Design and development guidelines for manufacturing

at Volvo Cars
Standardising the manufacturing engineering process
MASTER OF SCIENCE THESIS IN THE MASTER DEGREE PROGRAMME, QUALITY AND
OPERATIONS MANAGEMENT

HENRIK  ERICSSON  
MAGNUS  CARLRED  

Department of Product and Production Development

Division of Production Engineering
CHALMERS UNIVERSITY OF TECHNOLOGY
Goteborg, Sweden, 2012
Design and development guidelines for
manufacturing at Volvo Cars
Standardising the manufacturing engineering process

HENRIK ERICSSON
MAGNUS CARLRED

Supervisor: Jonatan Berglund

Examiner: Anders Skoogh

Department of Product and Production Development

Division of Production Engineering
CHALMERS UNIVERSITY OF TECHNOLOGY
Göteborg, Sweden 2012

iii
Design and development guidelines for manufacturing at Volvo Cars
Standardising the manufacturing engineering process
HENRIK ERICSSON
MAGNUS CARLRED

© HENRIK ERICSSON & MAGNUS CARLRED, 2012

Department of Product and Production Development

Division of Production Engineering
Chalmers University of Technology
SE-412 96 Göteborg
Sweden
Telephone + 46 (0)31-772 1000

Cover:
The picture on the cover is the Volvo Logo.
Printed by
Reproservice, Chalmers
Göteborg, Sweden 2012

iv
Abstract  
There are many aspects that need to be considered in production system development
processes. Currently, there is no standardised and structured way of developing
production systems at Manufacturing Engineering (ME), Volvo Car Corporation
(VCC). In this master thesis, the framework Design Guidelines for Manufacturing
(DGM) is presented with the aim to bring structure, standardise the work procedure and
improve the quality of the development processes at ME. DGM is a wide framework of
the aspects that need to be taken into consideration when designing a production system.
The main task in this study is to design the guideline index that includes these aspects.
The index is developed through information collected from interviews with experts at
ME and through academic and VCC literature. Data collection runs simultaneously with
the analysis of the data and the importance, correlations and influences of the aspects
are constantly questioned. This leads to a finalised guideline index consisting of 23
aspects that are located in six different categories. The guideline index is compare to
Volvo Cars Manufacturing (VCM) performance objectives in a workshop with experts
at ME, to validate the chosen aspects and to align them with the strategy of VCC. This
leads to the delivery of this master thesis, a wide framework of DGM consisting of the
important categories and aspects that need to be considered in production system
development. The aspects have to be further developed though, in order to work as a
guidance tool in production development. Therefore, one of the aspects is further
developed in order to create a demonstration aspect that can work as guide for further
development of DGM.

Keywords:
Manufacturing, Production, Development, Aspect, Category, Process

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Acknowledgment  
There are many persons to thank for their help and support throughout this research.
First of all, we would like to thank our supervisors, both Jonatan Berglund at Chalmers
and Jan Eskilsson at Volvo Cars, for the feedback and advice that they have offered.
Jonatan Berglund always had time to spare in order to give accurate advice and nudge
the study in the right direction. Jan Eskilsson connected us with the right persons of
interest and was constantly enthusiastic about the progress of the research, which
inspired us a lot. Furthermore, we would like to thank our examiner Anders Skoogh for
shaping the delivery of the thesis as well as the report with his constructive and precise
criticism.

There are several more persons to thank at Volvo Cars. Most of all our thanks go out to
Charlie Berner who has been somewhat of an unofficial supervisor at Volvo Cars. There
have been numerous meetings and discussions where Charlie has pointed us in the right
direction and his opinions have been crucial for the success of this research. Moreover,
the entire department of Strategic Planning & Control at Volvo Cars have been of great
help during the study. Everyone has been available when help has been needed and been
eager to follow the progress of the thesis.

Lastly, a big thanks to those who have participated in the interviews and workshops
during the research. Without you, we would not have been able to achieve the same
level of outcome.

Regards,

Magnus & Henrik

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Abbreviations  
BoP Bill of Process
CE Concurrent Engineering
CNC Computer Numerical Control
CSF Critical Success Factors
DFMA Design For Manufacturing and Assembly
DGM Design Guidelines for Manufacturing
FMA Failure Mode Avoidance
FMEA Failure Mode Effect Analysis
GPDS Global Product Development System
ME Manufacturing Engineering
NPD New Product Development
OEE Overall Equipment Effectiveness
OWE Overall Work Efficiency
PII Product and Inspection Instruction
PoPS Product and Process Sequence
QCDISMEL VCM performance objectives
QFD Quality Function Deployment
SP&C Strategic Planning & Control
SVLs Sheridan-Verplank Levels
TARR Time Adjusted Rate of Return
VCC Volvo Car Corporation
VCM Volvo Cars Manufacturing
VCMS Volvo Cars Manufacturing System

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Table  of  Contents  
1 INTRODUCTION .................................................................................................................................... 1  

1.1 BACKGROUND ..................................................................................................................................... 1  

1.2 VOLVO CAR CORPORATION ................................................................................................................. 2  
1.2.1 Manufacturing Engineering ........................................................................................................ 2  
1.3 PURPOSE & GOALS .............................................................................................................................. 3  
1.4 PROBLEM DESCRIPTION ....................................................................................................................... 4  
1.5 DELIMITATION ..................................................................................................................................... 4  
1.6 TERMINOLOGY ..................................................................................................................................... 5  

2 THE PRESENT STATE AT VCM ......................................................................................................... 7  

2.1 THE PRODUCTION SYSTEM ................................................................................................................... 7  

2.2 VCM TOOLS AND FRAMEWORKS ......................................................................................................... 8  
2.2.1 Bill of Process ............................................................................................................................. 8  
2.2.2 VCMS .......................................................................................................................................... 9  
2.2.3 Performance objectives QCDISMEL .......................................................................................... 9  
2.2.4 Product development requirements .......................................................................................... 10  
2.3 PRODUCTION DESIGN AND DEVELOPMENT PROCESSES ...................................................................... 10  
2.3.1 The present ME process ............................................................................................................ 10  
2.3.2 Research gap ............................................................................................................................. 11  

3 METHODOLOGY ................................................................................................................................. 13  

3.1 RESEARCH STRATEGY AND DESIGN.................................................................................................... 13  

3.1.1 Research execution ................................................................................................................... 15  
3.2 DATA COLLECTION ............................................................................................................................ 16  
3.3 DATA ANALYSIS ................................................................................................................................ 19  
3.3.1 Data analysis strategy............................................................................................................... 20  
3.3.2 Adapted analysis strategy ......................................................................................................... 22  
3.4 RESEARCH QUALITY .......................................................................................................................... 23  

4 THEORETICAL FRAMEWORK ........................................................................................................ 25  

4.1 A STRUCTURED WAY OF WORKING .................................................................................................... 25  

4.1.1 Management and Control ......................................................................................................... 25  
4.1.2 Preparatory design ................................................................................................................... 26  
4.1.3 Design specification .................................................................................................................. 26  
4.1.4 Realisation and planning .......................................................................................................... 26  
4.1.5 Start-up ..................................................................................................................................... 26  
4.1.6 System Aspects .......................................................................................................................... 27  
4.2 OPERATION STRATEGY MATRIX ........................................................................................................ 27  
4.3 CONCURRENT ENGINEERING .............................................................................................................. 28  

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 4.4 16 LOSSES .......................................................................................................................................... 30  
4.5 LEAN LAYOUT.................................................................................................................................... 32  
4.6 LEVEL OF AUTOMATION..................................................................................................................... 33  
4.7 MANUFACTURING FLEXIBILITY ......................................................................................................... 35  
4.8 MODULARISATION ............................................................................................................................. 37  
4.9 COMMONALITY .................................................................................................................................. 38  
4.10 MATERIAL FLOW ............................................................................................................................. 39  
4.11 ROBUST DESIGN METHODOLOGY ..................................................................................................... 40  
4.12 IMPLEMENTATION ............................................................................................................................ 41  

5 ITERATIVE GENERATION OF THE GUIDELINE INDEX .......................................................... 43  

5.1 ITERATION 1 – LITERATURE CHECKLIST AND BASIC CONCEPTS ......................................................... 44  

5.2 ITERATION 2 - PILOT INTERVIEWS ...................................................................................................... 47  
5.3 ITERATION 3 – INTERVIEWS ............................................................................................................... 50  
5.3.1 Production system ..................................................................................................................... 51  
5.3.2 Product characteristics ............................................................................................................. 53  
5.3.3 Logistics .................................................................................................................................... 54  
5.3.4 Finance ..................................................................................................................................... 55  
5.3.5 Competences ............................................................................................................................. 56  
5.3.6 Work environment ..................................................................................................................... 57  
5.4 ITERATION 4 – ADDITIONAL CONCEPTS AND THEORY ........................................................................ 58  
5.5 ITERATION 5 – WORKSHOP: WHAT? WHY? HOW? ............................................................................ 62  
5.6 FINAL VERSION .................................................................................................................................. 63  
5.6.1 Aspect example – Verification .................................................................................................. 63  
5.7 IMPLEMENTATION .............................................................................................................................. 67  
5.7.1 Further development of DGM ................................................................................................... 67  
5.7.2 Future implementation of DGM................................................................................................ 68  

6 DISCUSSION .......................................................................................................................................... 71  

6.1 INITIAL RESEARCH CONSIDERATIONS................................................................................................. 71  

6.2 COMPARISON BETWEEN STARTING POINT AND END RESULTS ............................................................ 72  
6.3 WORKSHOP REFLECTIONS .................................................................................................................. 74  
6.4 THOUGHTS ON FURTHER DEVELOPMENT............................................................................................ 76  
6.5 ALTERNATIVE RESEARCH DIRECTIONS .............................................................................................. 76  
6.6 IMPACTS OF DGM IMPLEMENTATION ................................................................................................ 78  
6.7 EXPECTED EFFECTS ON SUSTAINABILITY ........................................................................................... 79  

7 CONCLUSION ....................................................................................................................................... 81  

7.1 FUTURE RESEARCH ............................................................................................................................ 82  

REFERENCES .......................................................................................................................................... 85  

ix
  

 
1  Introduction  
This study is carried out through the spring of 2012 at Volvo Cars, under the
department of Strategic Planning and Control (SP&C) at Manufacturing Engineering
(ME). The introduction aims to give the reader a clear understanding of the purpose of
doing this thesis. The first part discusses the background as to why this research is
relevant, followed by a description of the company in which the project is carried out.
Further on, the purpose and goals are stated followed by problem description and the
delimitations of the research.

1.1  Background  
There is an increasing competitive situation in production industries today. According to
Bellgran & Säfsten (2010), this motivates the need of understanding how to develop and
establish operations into an effective production system. Managing and controlling
existing production systems results in limited improvements, while the right thinking
during the initial development phase of the production system can contribute to higher
potential benefits.

After a number of studies carried out by Bellgran & Säfsten (2010) within Swedish
manufacturing firms starting from 1990, the authors' shared unambiguous view is that
manufacturing companies lack a structured and systematic way of developing
production systems. Low priority under time pressure and the risk of jeopardizing the
flexibility of a development plan are two common arguments against using a structured
approach. However, Bellgran & Säfsten (2010) argues the opposite; that a structured
way of working is what decreases the time spent on planning in an unstructured
approach. Therefore one could argue that it would be helpful to use a structured
approach in order to decrease wasted time when working under time pressure.

Beskow (2000) states that a structured way of working is a common element in

companies' product development processes. Regarding the risk of losing flexibility,
Bellgran & Säfsten (2010) makes comparisons with product development processes and
points out several benefits with a structured approach. These are that the structured
approach brings a holistic decision process where the logic of the decisions are clear and
it is secured that important issues are handled. The authors also argue that the process is
largely self-documenting and information is easy to access for newcomers.

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The benefits of having a structure and standardised production development process
insinuate the need to implement some sort of common approach in the company, with
guidelines for instance. In product development this has already taken a start, with the
implementation of design guidelines for specific sub-systems, such as fuel systems
(Volvo Cars, 2012a).

1.2  Volvo  Car  Corporation  

Volvo Car Corporation (VCC) is a global car manufacturer, founded year 1927 in
Goteborg, with assembly plants in, for instance, Goteborg, Gent and Chongqing. VCC
was owned by Volvo AB until 1999 when it was bought by Ford Motor Company and
was under Ford's ownership until 2010 when Geely Holding Group acquired Volvo
Cars. (Volvo Cars, 2012b)

1.2.1  Manufacturing  Engineering  

The department of Manufacturing Engineering at Volvo Cars is the link between
product development and production, making sure that the journey from just an idea to
the actual production runs as smoothly as possible. Product development and production
both have different drivers and focus areas and it is in the interest of ME to make the
best out of the situation, trying to fulfil the needs of both functions.

ME works with changes regarding both products and processes. Whenever a change is
about to take place, ME starts with making a feasibility study to investigate if it is even
possible from a manufacturing point of view. A system strategy is also created, before
the project even starts. Then, in the start-up phase of the project, ME works parallel with
product development by forming the manufacturing system. The development of the
product and the manufacturing system are making mutual progress until the final stage
is reached, when the project is ready for job one. This process can be improved by
thoroughly investigate synergies in projects in order to communicate mutual guidelines
for manufacturing design that will bring a shared vision within ME, a sort of framework
of how the process can be done without forgetting an important aspect.

ME is a centralised function of Volvo Cars, located in Gothenburg. It highly affects

other departments' work, which makes the effectiveness of the department important.

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The vision of ME is to "define, prepare, launch and maintain waste free, defect free,
highly efficient and flexible industrial systems and robust products".

1.3  Purpose  &  Goals  

For the time being there is a lacking structure in the production development processes
at ME. There is insufficient information regarding the topic in the academic literature.
Therefore, the purpose of this master thesis is to propose a guided way of working with
the development projects, which is both effective and secures the quality of the
production development processes.

In order to fill this gap, the goal of this master thesis is to deliver a framework with
guidelines to ensure the success of the development processes. The framework consists
of a guideline index, i.e. a structured map of the important aspects that has to be
considered during the projects. In this index, the aspects are ordered hierarchically and
underneath each aspect there are several guidelines and considerations that have to be
taken into account when developing production systems. Thus, the delivery of this
thesis does not include all the important guidelines of how to develop production
systems, since the focus is to deliver the structure of the guideline index. This study
results in the following deliverables:

• Important aspects: The crucial aspects that need to be considered in a production

development processes.
• Structure of guideline index: The structure of how the different aspects relate to
each other in a hierarchical order.
• Aspect descriptions: Describing each aspect and its importance, complemented
with guidelines explaining the issues that has to be considered.
• Fields of expertise: Mapping the departments of interest for further detailed
description of the guidelines.
• Exemplified aspect: A more detailed description of an aspect that includes more
concrete guidelines in order to exemplify how the guidelines can be further
developed. The exemplified aspect is in this case “material flow”.
• Implementation plan: A suggestions for how the guidelines should be
implemented.

Together, the deliverables results in the main delivery from this master thesis, the
framework Design Guidelines for Manufacturing (DGM). This is a wide framework

3
with a more detailed description of the aspect “material flow”, which works as an
example of how the aspects can be further developed.

1.4  Problem  description  

The focus of this study embrace the lack of structure and guidance concerning projects
carried out at ME. To be able to solve the problem, the following research questions are
investigated:

• What aspects need to be considered in order to prevent complications and secure

the success when carrying out a production development project at ME?
• How should the aspects be categorised and what needs to be included in the
aspects in order to ease the usage of the design guidelines?
• What factors affect the success of implementation of the guidelines delivered by
this study?

1.5  Delimitation  
The following delimitations are considered during the thesis work based on the stated
objectives:

• This study mainly aims to give guidance applicable to Manufacturing

Engineering department of Volvo Cars. No investigation regarding applicability
on other functions, companies or industries is performed.
• This research should solve the problem on a high overview level and not a
detailed requirement level. Only guidelines and considerations when designing
and developing production systems are included whilst requirements are not.
• The different aspects and the content of these aspects will not be weighted and
compared with each other in terms of importance. Hence, situations where
aspects contradict will not be investigated in the research.
• This thesis does not involve the actual implementation of the guidelines.
However, it does involve implementation suggestions as a result of the third
research question.
• The resulting guideline index will not comprehend every guideline that has to be
taken into consideration in production development. Future development of the
guidelines has to be done by experts within the area. As earlier described,
material flow is further developed, see appendix A.

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1.6  Terminology  
In order to facilitate the readers’ ability to follow the reasoning throughout this research,
this section aims to clearly state the different terminologies used in the work. The
different terms and their hierarchical relations are illustrated in the picture below. The
highest level of hierarchy that will be discussed is the term “Design Guidelines for
Manufacturing”. This is the main deliverable towards Volvo Cars and the evolvement
of this document is described throughout the report. DGM consists of a set of
categories, which in turn consist of a set of aspects to consider when working within
each category.
Design  
Guidelines  for  
Manufacturing  

Category  #1   Category  #2   Category  #..  

Aspect  #1   Aspect  #...   Aspect  #...  

Aspect  #2   Aspect  #...  

Aspect  #...  

Figure 1 Illustrative description of the hierarchy.

Each aspect should then be filled with concrete guidelines for how to work. One
example could for instance be that a category named “Production system” includes for
instance the aspect of “Level of automation”. The aspect is structured around three
parts; the first part is what and describes what the aspect is about, the second part is why
and it describes why the aspect is important to consider, the final part how consists of
the gathered guidelines. See section 5.6 for further clarification. As an example, the
How part of the aspect “Level of automation” can for instance include guidelines such
as:

• Consider implementing automated solutions in situations where man-hours are

expensive.
• Consider implementing automated solutions when the work task environment
can be hurtful for operators.

5
 • Automated solutions should be supported by positive business cases before
implementation.
• Automation might limit the process flexibility because of…

The level of detail in the guidelines differs depending on the detail level of the system
on which they are applied. Some guidelines can be specific for design and development
of a certain manufacturing system, whilst others can be very general. As mentioned in
delimitation, this research aims towards a general view of manufacturing design and
development. However, in order to give guidance for how the guidelines could be
developed further, the aspect of “Material flow” is developed with more depth. Still,
this is just a demonstration and the future of DGM is yet to be decided in the hands of
Volvo Cars. See appendix A for the demonstration aspect.

6
2  The  present  state  at  VCM  
This section describes the current state at Volvo Cars Manufacturing (VCM) with the
purpose to give the reader a better understanding of what tools and work procedures
that are used in todays work at VCM. Initially there is an introduction to the production
system, followed by what tools and frameworks that are used in VCM and concluded
with a description of the production design and development processes.

2.1  The  production  system  

The general idea of a production system consists of having something produced. The
input is the material, work and capital, which lead to the output, the product or service
(Hågeryd et al., 2005).

This is also the case for the production at Volvo Cars, where the steel, rubber, fabrics,
glass etc. are turned into finished cars as a factor of labour and invested capital. There
are three main factories in the Torslanda plant in Sweden called A, B and C. A is the
body factory, B is the paint factory and C is where the final assembly of the car takes
place. Factories A and B has a high level of automation because there are unsafe and
bad ergonomic situation for manual labour as well as high need for narrow tolerances.
To support the production of cars in Torslanda there are several additional support
factories, for instance the body components factories that are located in both Olofström
and Göteborg, and the engine factory located in Skövde. An illustration of the Torslanda
plant is shown in the figure below. (Volvo Cars, 2012b)

Figure 2 Illustration of the Torslanda production plant.

There are four main components that production systems consists of, namely product,
machines & equipment, employees and facilities (Hågeryd et al., 2005).

The facilities are the factories earlier mentioned. The product is the outcome of VCC
production system, which consists of the different variants of cars. The machines &
7
equipment are the invested capital in automated processes and the employees are the
labour needed in order to produce the cars. Furthermore, it is important to note that
additionally to the factories there are also many offices that contain elements of all these
four components. (Volvo Cars, 2012b)

Line production is suited for a high volume with a small number of variants. This leads
to the need of buffers in order to prevent stop in production as a result of:

• planned changes of tools

• tool adjustments and breakdowns
• defects in the products
• adjustments of the tolerances
• problems with the transportation of products.

A more flexible line allows a higher number of variants because the change-over
between variants are easier. In order to lower the work in progress the production line
can be combined with a customer order focus. (Hågeryd et al., 2005)

The production system at Volvo Cars is a flexible line production with customer pull
focus. In order to decrease the production costs even more the production strives
towards a just-in-time philosophy, which is a lean philosophy with the meaning to
produce and deliver the right item in the right amount and in just the right time
(Womack & Jones, 2008).

2.2  VCM  tools  and  frameworks  

In this section several of the tools and frameworks that are used in VCM is described.

2.2.1  Bill  of  Process  

The Bill of Process (BoP) is a tool that is widely used at Volvo Cars. It describes the
production processes and it is used both as a visual aid, since it illustrates the operation
sequence at VCM, and as an aid to develop and refine the production system. The tool
contains several different levels, where the description of the sequence gets more and
more detailed with the increasing levels. Level 0 describes the operations on a plant
level, including all the different factories of the plant illustrating the whole production
journey from steel plates to a fully complete and drivable car. Level 1 describes all the
processes of a certain factory, e.g. the Paint factory shown below. Level 2 describes the

8
operations on a more stationary level and level 3 is the lowest described sequence based
on measured values such as PII (product & inspection instruction), PoPS (product and
process sequence), etc. (Volvo Cars, 2012c)

Figure 3 Illustrative example of Bill of process at Volvo Cars.

The BoP is a rather new tool at Volvo Cars and it is still under development. This
means that it does not yet include every aspect of the production system, which is the
goal of the tool. It is already enthusiastically used and the tool brings unity and clarity
between the different functions and plants of VCC. (Volvo Cars, 2012c)

2.2.2  VCMS  
Volvo Cars Manufacturing System (VCMS) is an adapted lean strategy that is used at
Volvo Cars. Every employee at the company is familiar with the improvement initiative
that VCMS stands for and the results of the introduction of the tool has led to many
improvements in VCM. The system is similar to a lean temple including several
important principles, adapted to the Volvo Cars language in order to be of the outmost
effectiveness. (Volvo Cars, 2012d)

2.2.3  Performance  objectives  QCDISMEL  

In order to know what to strive towards, VCM has performance objectives called
QCDISMEL. They stand for quality, cost, delivery, improvement, safety, medarbetare
(co-workers), environment and leadership. These objectives are continuously checked at

9
departments meetings and with the help of scorecards at ME in order to keep the work
focused on what is important. The objectives are widely used and acknowledged among
Volvo Cars’ employees. (Volvo Cars, 2012e)

2.2.4  Product  development  requirements  

There are several requirements and pre-requisites derived from the production system.
Many of these are directly affected by the characteristics of the product. Hence, there
are a lot of product development requirements that has to be considered and followed by
the product development department to make it possible to produce the product. Several
of these requirements are coming from the department of ME and is constantly
expressed and pronounced to the product developers. (Volvo Cars, 2012f)

2.3  Production  design  and  development  processes  

As previously described, there are many functions of ME. In this master thesis the focus
is on the projects that aims to design and develop production systems. For instance,
these processes are:

• Small continuous improvements the production system in production – kaizen.

• Developing the existing production system.
• Designing new production systems when a new factory is designed or a new line
has to be implemented.

Continuous improvement, kaizen, is mostly performed on the production floor by

implementing smart solutions to the production flow. Future references of projects in
this paper refer to these production development processes. Consequently, the main
users from the deliverable of this research are those who work with these processes.
Everyone that is involved in these types of projects would benefit from a more
structured approach and the increased knowledge that can be obtained by using a
standardised workflow.

2.3.1  The  present  ME  process  

When new cars and their productions system are to be developed today at VCC, the
development process follows a certain path named Global Product Development System
(GPDS). GPDS range from the project initiation all the way to start of production. This
range requires a large amount of stage gates to secure that the development proceeds as

10
planned. In order to explain the overview of the process from a manufacturing
engineering point of view, one can divide it into three main parts:

• Manufacturing strategic planning and business compatibility.

• Virtual product and process compatibility.
• Physical product and process compatibility.

The first part is about taking a strategic stand and plan for the future. This is for
example where the Bill of Process tool comes in. It is a strategic matter to strive towards
similarities in the operation sequences between different cars and factories. Another
example is for instance to strive towards high compatibility between different interfaces
early in projects, rather than putting all the focus on high completeness of the subsystem
with low compatibility in-between. (Volvo Cars, 2012g)

The strategic part is followed by the part in which the products and processes are
developed virtually with respect to specific requirements. When developed the
compatibility is tested. This all takes place within the toolbox of software available at
the company. This step ends up with an evaluation regarding how the concepts align
with the goals. For instance, is it possible to produce this product (at desired level of
quality) in the intended manufacturing facility? Is the solution within the limits of the
allocated cost? Can we run this solution with the required line speed? (Volvo Cars,
2012g)

After the product and process have been developed virtually it is time to develop them
and test their compatibility in physical reality. Following a so-called control plan does
this step reliable and secures the quality. The control plan is a list of all the critical
controls, inspections and tests, which needs to be verified when building the product
and process. (Volvo Cars, 2012g)

2.3.2  Research  gap  

As earlier described, at present there is not a structured way of working with the
production development processes at ME. By investigating the academic literature it is
clear that information about adaptable guidelines in this case is absent. Certainly, there
is information about what aspects that has to be considered from project initiation to
production ramp-up. However, they are not nearly detailed or concrete enough to be

11
implemented and used at VCC. The lack of academic literature suggests the need to
investigate in more detail what aspects that have to be considered when developing
production systems.

Today there are many tools and frameworks that cover several of the work processes at
ME. However, they are not sufficient enough to guide and support the processes of
designing and developing the production system. There are several requirements,
strategies and tools such as BoP and VCMS. One of the mayor problems is that they are
spread wide over the department of ME. This insinuates the need of a collective
document that includes the information and expertise needed to not miss any important
aspects when designing or developing the production system. It is important to note that
the collected document is based on the present state of the VCC production system. This
means that if the production system changes considerably, for instance if the production
methods are vastly changed, the document might lose its validity. However, minor
changes can be implemented into the document. This is further discussed in the
discussion section 6.6.

12
3  Methodology  
The methodology describes how the project research is performed. To start with, the
research strategy and design is explained, including a section about the research
execution. Then the methods used when collecting and analysing the data are described.
Lastly, the methodology for controlling the quality of the research is discussed. The
framework by Bryman & Bell (2011) is regularly used in the methodology to give
structure and guidance throughout the research.

3.1  Research  strategy  and  design  

The research in this thesis is based on both a theoretical study and an empirical study.
The theoretical study includes:

• Investigation of what tools and guidelines that are already in use at the ME
department of VCC.
• Screening of external usage of design guidelines.
• Examination concerning production development processes.
• Research about production development phenomenon that is applicable on the
situation at ME.

The empirical study consists of interactions with department heads and other employees
of interest at ME.

An inductive research approach is used during this research since the theory is a result
of the findings. The theory is in this case the guidelines that are formed by the findings
from the study. As Bryman & Bell (2011) states, "with an inductive stance, theory is the
outcome of research". In a deductive approach on the other hand, the authors explains
that the theory and the creation of a hypothesis precedes the observation and findings.
The hypothesis is translated into researchable entities and then tested. Because of these
reasons, this approach is not applicable in this thesis.

The epistemology, the question of what is acceptable knowledge, is in this work based
on an interpretivism view. By using phenomenology approach in the research, it is
possible to interpret the actions of the employees and make sense of how they perceive
the working processes at ME. The positivism standpoint would somewhat restrain the
research, since a big part of this study is to examine the social scientific aspects when

13
working on the development projects, which positivism does not approve as acceptable
knowledge. It is important to take the social aspects into consideration in order to create
useable guidelines. (Bryman & Bell, 2011)

Qualitative research strategy is the basis for this thesis. As stated by Bryman & Bell
(2011), qualitative research "emphasizes words rather than quantification in the
collection and analysis of data". Since the epistemology orientation in this paper is
interpretivism, it is important to focus on the qualitative outcome of the research instead
of quantitative factors that would be hard to assess (Bryman & Bell, 2011). Also, a
qualitative research approach is more useful in the case considering that the empirical
study consists of interactions with the employees at ME, meaning that the possibility to
collect quantitative data is small. There is also no interest in using a lot of statistical
tools, but rather to qualitatively analyse the gathered information from the interactions.

The research design used in this thesis is a case study design. As Stake (1995) mentions,
a case study is performed when the case itself is of special interest and when the
particularity and complexity of the case is the desired target. The comparative design or
the cross-sectional design might have been good alternatives to the case study design in
order to get good insight of the applicability of different guidelines in the production
development process. However, the problem with the designs is that they both need
more than one case to study. The accessibility to other companies' operations is only
what can be found from an external point of view, and that is not nearly sufficient
enough in order to adapt the designs. The comparative design would have been the
better suited design of the two alternatives, because it would be possible to have the
same research strategy approach as with case study design. Cross-functional design on
the other hand uses a quantitative research strategy, which would change the research
strategy considerably. (Bryman & Bell, 2011)

14
3.1.1  Research  execution  

Figure 4 Research execution steps.

The research consists of five major parts in which data collection and data analysis are
running in parallel. The investigation is performed in order to increase the
understanding of what is important, why it is important and how it should be taken into
consideration. The first part is an initial study of up-to-date academic literature. This
initial study aims towards finding work that can facilitate and become valuable in the
thesis, generally widen the knowledge base within the area and secure that no successful
solution is already available. The findings from the first part are used as input into the
second part, which regards pilot interviews. The aim with the pilot interviews is to
investigate how well functioning the data collection method is, how clearly the
participants perceive the purpose of the thesis and to what extent the participants’
answers are answering the research questions. The third and fourth part is an iterative
process of interviews and further literature studies needed to cover topics derived from
the interviews. When it comes to analysing this part, it is about understanding how
different aspects within the topic are perceived, classified and applied to Volvo Cars, in
order to find synergies and develop a united bigger picture. When the bigger picture is
clear, it is used as the input to the fourth part that is a workshop. The workshop is an
approach of gathering data and in this case it aims towards investigating how the bigger
picture, derived from interviews, align with and contributes to the performance
objectives of Volvo Cars Manufacturing (VCM). The performance objectives are called
QCDISMEL and stands for quality, cost, delivery, improvement, safety, medarbetare
(co-workers), environment and leadership (Volvo Cars, 2012e). Finally, the data
collection and analysis is concluded into the thesis delivery to VCC, i.e. the document
of Design Guidelines for Manufacturing. These guidelines will not be fully finished

15
however, since experts at Volvo Cars has to fill this document with information.
Therefore a demonstration will be made of the aspect “material flow”, making it a bit
more extensive than the others, in order to show how the guidelines can be developed in
the future.

3.2  Data  collection  

According to Glass (1976), "primary analysis is the original analysis of data in a
research study". It is based on the premise that the analysed data is not collected on a
secondary level, which would be the case of secondary analysis. The purpose of
secondary analysis is mostly to answer new questions with old data. In conclusion, the
author suggests that extracting knowledge from accumulated studies is important since
the wanted information often resides in an already existing and vast literature. (Glass,
1976)

On this note, the data collection in this research involves both primary and secondary
data. The primary data collection mostly consists of interviews with persons of interest
at ME. It is both persons who have a lot of expertise in different areas of the production
development process as well as managers higher up in the hierarchy, who have a more
overview understanding of the work process at the department. The interviews give a
better understanding of what the design guidelines should include and it also leads to
new Volvo Cars specific aspects. In addition to interviews to collect primary data, the
study includes a workshop. The workshop is attended by personnel from ME that have a
good understanding of the performance objectives at Volvo Cars Manufacturing (VCM)
and also understands the purpose and importance of design guidelines. During the
workshop, the produced guidelines are being compared to the VCM performance
objectives in order to adapt the design guidelines with respect to the strategy of Volvo
Cars.

The secondary data is collected in the theoretical study, described under research
strategy and design. Investigation of the already existing tools at ME provides the
research with an understanding of what tools the design guidelines should not be
replacing as well as helpful information about the ME work processes that can be
implemented in the design guidelines. The screening of external usage of design
guidelines is an overview scanning of open material to see if there already is an existing
and successful strategy that would make the creation of design guidelines at ME a

16
whole lot easier. An examination concerning production development processes is
performed in order to get a better understanding of production development. These
theory studies are performed in the initial literature study. The final topic of the
theoretical study, which is done in the literature study parallel to the interviews, is
regarding other phenomena that are applicable on the situation at ME. This is done in
order to investigate if there are other factors that have to be taken into consideration
when creating the design guidelines. This data is collected both from internal literature
at VCC and from external academic sources.

Structured interviews are a common approach when doing a quantitative research.

When doing a qualitative research however, the interviews tend to be much less
structured. According to Bryman & Bell (2011), that is merely one of many differences
between interviews of a quantitative and a qualitative approach. For instance, the
authors say that "in qualitative interviewing, there is much greater interest in the
interviewee's point of view". Since the quantitative research is aiming for measurable
and standardised data, the interviews are built in a structured way that leaves little or no
room for deviation from the interview plan. The qualitative interviews on the other hand
are far more flexible and deviation is even sometimes encouraged. Because this thesis is
based on a qualitative research, the chosen interview approach is the semi-structured
interview, with an interactive feature in order to get a good involvement of the
interviewees. With this approach the interviewees are asked to place the different
aspects under the categories they think they belong to. Both aspects and categories are
developed in the initial literature study. An illustration of how the aspects are placed
under different categories during the interviews is shown below.

Figure 5 Interview procedure with participant placement of post-its.

While the interviewees are placing the aspects, a list of questions is covered with the use
of an interview guide, see appendix B. This leads to a discussion about the aspects,

17
opposite to if the interview would have been of a structured approach in which the
interviewee has to answer much more narrow and direct. The answer in the chosen
approach sometimes also leads to follow-up questions by the interviewer, leading to
even more useful answers. In order to get the best result out of the interviews, an
interview description is sent to all participants with a detailed explanation of the
different parts of the interview as well as a description of the aspects and categories.
The interview description can be seen in appendix C.

The risk with this approach lies within the amount of analysing that has to be done and
the task to extract the useful information. There might also be a problem to keep the
interviews somewhat on track. (Bryman & Bell, 2011)

Another possible approach when interviewing in a qualitative research is the

unstructured interview. This approach does not consist of any actual guide and the
topics that are covered are few. There could just be one question that the interviewer
asks and the interviewee is then allowed to respond freely. This type of interview is
similar to discussions and can be good to use when the root of a problem is hard to
specify or the researcher does not exactly know what to look for. The unstructured
approach needs a lot of analysing and it is even harder than with semi-structured
interview to extract the useful information, which is why it is not applied in this study.
(Bryman & Bell, 2011)

When creating the interview guide a couple of aspects have to be taken into
consideration. For instance, the questions are formed in order to answer the research
questions, leading questions are avoided, an order of the questions and topics are
established and a standard form with questions about the name, age, gender, etc. is
created. In order to ensure that the interview guide is valid and reasonable, three pilot
interviews are held. The main benefit of these interviews is to ensure that the questions
are easily understood and possibly to exclude questions from the interview guide or
include new questions. (Bryman & Bell, 2011) In order to see the interview guide, see
appendix B.

Once the pilot interviews are done and the interview layout is finalised, the interviews
are held. There are 11 interviews, where the interviewees are experts from different
departments of ME. During the interviews the layout is consistent and unmodified in
order to have comparable result, free from any bias reasoning.

18
In this thesis there is a mixture of academic research, examination of already existing
information and tools from VCC and also information input from the interviews. In
order to create guidelines that fit the department of ME at VCC, these sources has to be
integrated and formed, making the guidelines consist of elements from academic and
Volvo Cars expertise, as well as integrating the VCC strategy so that the guidelines
follow corporate strategy.

3.3  Data  analysis  

Altogether, there are four parts of analysing in this study, as illustrated in figure 4. The
first part is the analysis of the initial literature study in order to secure that the topic is
approached in a good manner. There is also an initial research of what the guidelines
should consist of. Once the course of the research is set, the interview guide is
developed and needs to be analysed in order to establish that the questions in the
interview are answering the research questions. In a qualitative research, this part is
especially important, since the quality of the outcome data is a highly affected by the
quality of the input data. If the questions are wrong from the start, there is no way to
accomplish a successful study. When the interview guide is finalised, the research enters
the next stage, which is the iterative phase where interviews and literature study are
performed and analysed. This analysing forms and develops the guidelines as a result of
answering the research questions. When this step is done, the guideline index is fairly
finished, meaning that the first two research questions are close to being answered and
that the what and how of the guidelines are formulated. The last step concerns the
workshop and the study of how the guidelines are aligned with the VCM strategy. It is
important to work alongside the general strategy of the company to secure conformity
of the departments and functions of Volvo Cars. The analysis of the workshop is the last
piece of the puzzle to finalise the design guidelines for manufacturing by leading to the
answering of why the guidelines are important for the production development process.

One could argue that analysing the data collected throughout this research is a complex
process, especially since all the data is qualitative and as Bryman & Bell (2011) states,
qualitative data bases has the tendency to grow big in rapid pace since it often consists
of notes, interview transcripts and other types of documents. This motivates the
importance of having a strategy for how to handle the analysis of data in an effective
way. While quantitative analysis entails widely used and accepted techniques for
analysing data, the authors argues that qualitative data analysis on the other hand, lack

19
and might not even need a structured analytic procedure. Instead Bryman & Bell (2011)
communicates the need of focusing on a broader perspective, a strategy.

3.3.1  Data  analysis  strategy  

The purpose of the analysis strategy is to bring clarity to some major steps in the
process of analysing the data. Unlike in quantitative analysis, where the analysis
generally starts first when all the data is collected, the process in qualitative analysis
implies that the data analysis takes place in parallel with gathering of the data and
through that also influence the following data collection. (Bryman & Bell, 2011) This is
an important aspect of the research. First of all because the literature study is one of the
data resources used when constructing the interview guide, but also since the semi-
structured interviews might bring unexplored important topics that could be interesting
for the workshop or another further data collection method such as discussions. Two
commonly used approaches for the strategy is Analytical Induction and Grounded
Theory. The Analytical Induction is a process where the researcher investigates a
phenomenon and tries to find a universal explanation. This search is carried out through
a continuous collection of data until no further data, inconsistent with the potential
explanation, can be found. At this point in the research, Bryman & Bell (2011) states
that the hypothesis is confirmed. This strategy could probably be adapted to fit this
study but there is no perfect match. First of all it lacks the focus on combining literature
with practical knowledge in an iterative process of data collection. Second of all, this
would waste the time of the interviewees since the hypothesis has to be reformulated
every time a new aspect emerges.

Bryman & Bell (2011) states that Grounded Theory strives to develop new theory by
analysing data and theory collected continuously throughout the research. The
interaction and reflection between theory, data collection and analysis is constantly
present and a central part of the strategy. This strategy was primarily developed in 1967
by two medical social researchers named Barney G. Glaser and Anselm L. Strauss.
Further research performed within the area has led to two common perspectives and
interpretations of the strategy, often referred to either “a traditional Glaserian
perspective” or “an evolved Straussian version of grounded theory.” The traditional
Glaserian perspective is focusing on developing theory strictly from empirical data
whilst the evolved Straussian version allows the inclusion of none-empirical data in the
development of theory. (Birks & Mills, 2011)

20
The Straussian version fits this specific research rather well, for instance since it
suggests a strong iterative process where the literature studies, primary data collection
and analysis work in parallel. This means that the guidelines will embrace two points of
view, both internal knowledge from VCC and external from literature, with the
possibility to develop the guidelines continuously as soon as new knowledge is added.
Therefore, some parts of this strategy are used when analysing the data in this research.
However, because of the extensiveness of the theory it is not fully applicable. The
following part of this section describes
grounded theory as it appears in literature.
For a description of how different parts of
the Straussian version of grounded theory
is adapted into this specific research, see
section 3.3.2.

Figure 6 illustrates the work approach of

the grounded theory. The first three steps
in the strategy are mainly about
formulating the research and collecting
data. Still, since the data is qualitative, the
researcher needs to analyse and evaluate
the collected data continuously. In the
fourth step the researcher starts coding the
data, which is one of the most central parts
in Grounded Theory. The data is broken
down and gathered in different clusters
that are then being further developed and
given names. When all the clusters have Figure 6 Grounded theory adapted from Bryman & Bell, 2011.

names and include a set of data, they reach

a new stage called concepts. Using coding, for example affinity diagram, is beneficial in
this research since it supports the process of clustering the guidelines. In the grounded
theory, there is a constant movement between the first four steps in order to develop the
clusters as much as possible.

In step five and six the constant comparison is handled. This process aims to secure a
correct link between data indicators and concepts. In this step the guidelines are

21
compared to each other and the categorisation of the guidelines are correctly secured. In
step seven the categories are being investigated in order to build hypotheses about
potential relations between the different categories. This step contains an investigation
of how the guidelines relate to each other, if they affect each other and to secure that no
guidelines are communicating the exact same thing. The following steps of the process
is once again to follow an iterative approach of gathering and analysing additional data
needed in order to come up with a substantive theory, relating to the specific research at
hand. The final step is about exploring the theory in different settings in order to
investigate if it can be stated as a formal theory, not specifically related to the research
area. Since this study has the delimitation of only focusing on the applicability at ME,
the final step of the strategy is of no interest in this research.

3.3.2  Adapted  analysis  strategy  

The adapted data analysis strategy
is illustrated in the picture to the
right. Similar to the grounded
theory, it has the initial data
screening step, consisting of
formulating research question,
theoretical sampling and collecting
data. Next, the coding starts. In the
coding there are mapping of the
interviewees’ placements of the
aspects under the different
categories, clustering of the
interviewees’ arguments and
comparison of the arguments

within the clusters. The coding and Figure 7 Adapted analysis strategy.

the data screening steps are

continuously influencing each other with new information. The output of the coding is
the aspects that are formed by the clusters. The aspects are continuously fed into the
comparison step in which the aspects are compared and sorted into an index.
Comparison consists of developing the aspects by comparing the information of the
aspects with the audio recordings, as well as of constantly questioning and modifying

22
the relationship between the aspects. This leads to the outcome of the comparison, the
aspect index. Coding and comparison are iterated like this, while it is also fed with new
data, until the final aspect index is generated. The aspect index is completed when all
relevant data from the research is represented in the index.

3.4  Research  quality  

In order to secure a high quality standard of the research, a set of evaluation criteria
need to be discussed. Bryman & Bell (2011) states that the most common criteria are
reliability, replication and validity.

Bryman & Bell (2011) say that the main focus of reliability is to discuss whether or not
the measures and factors handled in the research are consequent in time. A simplified
example explaining the criterion would be putting the same person on the same scale
twice with only a short time interval in between. If the scale shows the same amount of
kilos both times, one could say that kilos as measure has high reliability and vice versa.
The reliability within this thesis appears in a slightly different way, since the data is
qualitative. One can see two main risks towards the reliability in this case. The first one
is the risk of interviewing only one person within a large working area. The thoughts
expressed by this specific individual are not necessary consistent with the thoughts of
his or her colleagues. This is known as a sample error. In order to avoid this, interviews
are spread out among colleagues with similar work responsibilities in order to get more
than one perspective. The other risk is the risk of persons changing their mind during
the time of the study, meaning that a person would give different answers to the same
question during the study. In order to prevent this from happening, the interview
questions should be clear to reduce the risk of misinterpretations.

Bryman & Bell (2011) states that replication of research is generally quite rare in
business research. The value of the replication lays within the possibility for other
researchers to perform the study again in order to confirm or question the result. The
authors also say that in order to reach a high level of a replication, the researchers must
explain all the different steps in detail. Since this thesis is out of a qualitative nature
where data continuously needs to be interpreted, it is hard to keep detailed notes of all
the steps and reasoning throughout the study. It is in the interest of the researchers to
strive towards as high level of replicability as possible. Therefore, important discussions
and decisions are documented in a journal. Another important aspect of the replication

23
of this study is the availability of collected data. Since the interviews are performed
with employees of VCC, a replication would need to have access to the same people.
This could be a problem for example if the interviewed persons retire, leaves the
company or if the researcher lacks access to VCC.

According to Bryman & Bell (2011) the validity is often the most important aspect
when evaluating a research. The aspect concerns the "integrity of the conclusions" from
a research. The authors describe validity in two separate parts, internal and external. The
internal validity discuss how well aligned the developed theory is with the performed
observations. When it comes to this specific study, a lot of the researchers' time is spent
on site in order to thoroughly understand the observed situation and through that secure
the alignment. A second approach to secure the alignment is to develop theory out of
combined data from different data resources, including internal reasoning captured at
interviews and workshops at VCC. The external validity regards how the research
findings can be generalised into other settings. As mentioned in the delimitations
section, this study mainly aims to develop a theory applicable at ME. However, this
does not necessarily mean that the developed theory is limited to ME and VCC. One
could suspect that the guidelines can be applicable at companies with similar strategy in
a similar market.

24
4  Theoretical  framework  
The theoretical framework strives to investigate up
to date reasoning and approaches within the topic
of Design Guidelines for Manufacturing, both
internally at VCC and externally in the academic
world. The investigation is performed in order to
gather information about the topic. To get a deep
understanding of the subject, both overview
perspective frameworks and more detailed topics
are investigated.

4.1  A  structured  way  of  working    

Bellgran & Säfsten (2010) presents their framework
for supporting a generalised approach during the
production system development processes that is
called "A structured Way of Working". The
approach is built on a time line perspective, from
the very beginning of a project to production start-
up, with five main phases during the development
process.

4.1.1  Management  and  Control  

The initial phase of the framework handles the
preparations and foundation of the project. This
includes both establishing documents, which can be
used for investment request, and developing a
project plan. The project plan should discuss
estimated project time, people involved in project
management, outlines for requirement
specifications etc.

Figure 8 A structured way of working, adapted from

Bellgran & Säfsten, 2010.
25
4.1.2  Preparatory  design  
The second phase of the framework is about investigating the state of art. This includes
performing a background study that will contain an analysis of product and existing
production system, benchmarking etc. The information found in this step can be
transferred and used as requirements for the production system. The other half of the
preparatory design step is called pre-study. The pre-study aims to analyse the market
development, market potential and applying the company strategy and objectives at a
managerial level.

4.1.3  Design  specification  

The third phase is design specification, where the framework of the production system
should be developed in detail. The phase starts with the process of designing several
potential production systems which will include information about machines,
equipment, automation level, work environment etc. When several possible solutions
are available the screening process starts. After choosing a specific method for how, and
according to what, the concepts should be evaluated, the process of screening the
concepts begins in order to find the best solution possible. When only the best solution
according to the evaluation criteria is left, the framework continues with designing the
production system in detail (e.g. work location and work tasks).

4.1.4  Realisation  and  planning  

The purpose of the realisation phase is to take the detailed design from the minds of the
developers and build this system in real life. This means for example to take make or
buy decisions regarding the equipment must be discussed and once the equipment is
available it has to be installed and verified. When the system is built it is time to start
planning for the start-up. This means appointing responsible people, plan for training of
the staff and develop a start-up strategy.

4.1.5  Start-­‐up  
When the start-up phase is reached in the framework one can really start to see the final
result of the development process. The production system is supposed to work
according to the start-up plan performed in the previous phase. When start-up has been
carried out it is time to evaluate both the production system and the development
process. The result of the evaluation should then be delivered to the process owner.

26
4.1.6  System  Aspects  
The framework described above shows a structured approach from an overview
perspective, regarding what steps to go through during a development process. In
addition to this Bellgran & Säfsten (2010) adds a more hands-on checklist of the aspects
to take into consideration during the development process. Some interesting aspects
mentioned in this checklist are for example modularisation, operation sequences,
tolerances etc. For the whole checklist, see Appendix D.

4.2  Operation  Strategy  Matrix  

Research performed by Skinner (1969 cited in Säfsten & Winroth, 2002) states that
manufacturing departments generally have a hard time reaching their proper level of
status within companies. Even though many companies spends up to 70% of total
investment capital on tasks related to manufacturing, the department still suffers from
the underlying thought of them only being the executors of what other decides. Finding
effective solutions regarding how to allocate the given resources, in the striving towards
competitive advantage, can be called manufacturing strategy.

According to Säfsten & Winroth (2002) the production system of a company should
reflect the internal manufacturing strategy. The company view on competitive aspects
must therefore be well connected with a clear link in the production system. In order to
secure the alignment between the strategy and the system, and through that improve the
competitive situation of the company, different tools can be used.

Figure 9 Operation strategy matrix, adapted from Slack & Lewis, 2008.

27
Slack & Lewis (2008) presents the Operation Strategy Matrix as one approach to tackle
this situation. The matrix is mainly built out of an intersection of two perspectives; the
market requirements and the operation resources. In this framework, a strategy that aims
to bring a competitive advantage on the market should be developed through the five
performance objectives: quality, speed, dependability, flexibility and cost. These
performance objectives are the foundation for how a company differentiates and
competes on the market. The other part of the matrix focuses on the decision areas:
capacity, supply network, process technology and development and organisation. These
variables embrace the resource usage part of the matrix.

Slack & Lewis (2008) states the importance of investigating how the different factors
influences each other in the intersections. This means that when using the matrix in
order to develop or investigate the alignment between performance objectives and
decision areas, one should for example be able to tell exactly how the process
technology will influence each and every performance objective. One can expect that
not all intersections will be as critical as others during the process since this depends a
lot on the nature of the operations and focus of the company.

4.3  Concurrent  engineering  

In the beginning of the 1990s, it was clear that time to market was an important
competitive leverage regarding product and process development. Wheelwright & Clark
(1992) describe the increasing competitiveness by three critical forces; intense
international competition, fragmented and demanding markets and diverse and rapidly
changing technologies. Further on, they describe speed as one of the competitive
imperatives for development of new products and processes. A main reason for the
importance of a fast development process is the decreasing life cycles of the products,
which originated in the increasing competitive responsiveness to the customers' needs.
A shorter time to market for the development projects will therefore lead to a
competitive advantage. (Wheelwright & Clark, 1992)

According to Swink et al. (1996), many companies adapt to the higher demands on the
new product development (NPD) process by adopting concurrent engineering (CE).
Yassine & Braha (2003) states that the main principle of the CE philosophy is to
integrate downstream concerns into the upstream phases of the development process.
This cross-functional integration is further described by Wheelwright & Clark (1992),

28
who focuses on the pattern of communication between the upstream and the
downstream group. The authors described it with the four dimensions of richness,
frequency, direction and timing, which determine the quality and effectiveness of the
communication. The authors also states that the most communicative mode, integrating
problem solving, includes rich communication with a high frequency, that goes in both
directions with an early start of communication between the upstream and downstream
group. Lack in communication can lead to that problems occur later than necessary,
which in turn leads to increased costs since the adjustment to handle to problem gets
more and more expensive over time. (Alfredson & Söderberg, 2010)

A definition of CE can be found by McGrath (1992), who says that "concurrent

engineering means developing the product and all its associated processes, that is,
manufacturing, service and distribution, at the same time". Sage & Rouse (2009)
presents a more modern definition by saying that there are two ways to define CE.
Firstly, it can be defined as "the practice of considering the entire functionality of the
product, as well as its assembly and manufacture, in an integrated design process". This
definition is according to the authors the original vision for CE initiatives. However,
later on, this perspective was widened and led to the inclusion of the entire life cycle
leading to the second definition, which reads; "the practice of considering the entire
product life cycle, from design to disposal, in an integrated design process". Even
though the CE concept includes and considers the whole life cycle when developing a
product, by using tools such as design for manufacturing and assembly (DFMA) and
quality function deployment (QFD), the authors states that "the need to integrate experts
from all functions in the product development process remains at the heart of CE".
(Sage & Rouse, 2009)

The wide definition of CE that includes the entire life cycle is commonly found. As
noted by Xu et al. (2007), all the factors involved in the life cycle has to be taken into
consideration in the CE process in order to fully accomplish a successful development
process. Although this is a good goal to strive towards when designing new products,
the implementation of the sometimes distant and abstract life cycle factors are hard to
accomplish. As Gehin et al. (2008) states, it is necessary to find the key success factors
for a given business model and try to implement them into the early phase of the
development process. Further described by the authors, designers will need tools that
can be integrated into their daily work, which enables them to evaluate environmental

29
impact of the product and its components and indicates the prospective potential for
reuse, recycling and remanufacturing.

Also Xu et al. (2007) concludes that concurrent product development processes need
effective support systems to be able to evaluate the design comprehensively. In the
article it is described how the information in the early designing process can be fuzzy
and it can lead to problems in the future development process. As Xu et al. states, "if the
previous decision is incorrect, the following design stages will be affected
significantly".

4.4  16  losses  

Total Productive Maintenance (TPM) is a managerial initiative that has reached a broad
acceptance in industry. The initiative brings several benefits and could lead to large cost
savings for a company mainly by focusing on avoiding and reducing disturbances of a
production system. (Gosavi, 2006) These disturbances leads to various sorts of losses
and research performed by Ahuja & Khamba (2008) describe the sixteen major losses
within TPM. The authors cluster these sixteen losses into four different categories
handling different types of losses. The first category describes losses that can be linked
to equipment efficiency; the second category describes losses regarding machine-
loading time; the third category describes losses regarding human performance; the
fourth category describes losses regarding use of production resources. The following
list shows the authors view on the different losses:

1. Breakdown/failure loss: Losses due to functional failure in the system that leads
to a lower utilization of the capacity than normal.
2. Set-up and adjustment loss: Losses due to the down-time needed when changing
the conditions of a system (e.g. for changing tools for different variants.)
3. Reduced speed loss: Losses occurring when the system in practice operates
below the speed it was designed for.
4. Idling and minor stoppage loss: Losses related to when the system idles or
temporarily stops due to problems in sensor activation, jamming of the work,
etc. The system could work normally again after removal of jammed pieces or a
system reset.
5. Defect and rework loss: Decreasing volume capacity due to rework, financial
losses due to downgrading, and time loss due to the time spent on repair the
product.
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 6. Start-up loss: Losses related to the start-up time of the production, until the
production-processing conditions stabilize.
7. Tool changeover loss: Stoppage time loss from when worn-out tools must be
replaced. (e.g. changing the cutting blades due to breakage)

8. Planned shutdown loss: Planned downtime of equipment in order to perform

inspection.

9. Distribution/logistic loss: Losses from failing to automate logistics as

loading/unloading, leading to no manpower reduction.
10. Line organization loss: Waiting time losses for operators and line-balance losses
in conveyor work.
11. Measurement and adjustment loss: Losses from measuring and adjusting the
quality to prevent outflow of products exceeding the tolerances.
12. Management loss: Losses due to managerial waiting time (e.g. waiting for
material, waiting for instructions, etc.).
13. Motion-related loss: Losses due to inefficiency in motion patterns (e.g. walking
patterns as a result of an ineffective layout).

14. Yield loss: Material losses in terms of differences in input material and output
material with the value added effect of the system.
15. Consumables (jig, tool, die,) loss: Financial losses related to cost of repairing
and changing broken tools and other consumables of the equipment.
16. Energy loss: Loss due to ineffective use of input energy of the system
(electricity, gas, fuel oil, etc.)

Volvo Cars (2012) presents an adapted and more hands-on approach of working with
the 16 losses. This approach divides the losses into the three main clusters of equipment
efficiency, human performance and production resources. The losses should be used as
a measurement of effectiveness within the production system by calculating the Overall
Equipment Effectiveness (OEE) and Overall Work Efficiency (OWE). The input
numbers of the losses should be measured and reported from the running production
system. (Volvo Cars, 2012h)

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4.5  Lean  layout  
According to Womack & Jones (2008), lean is the most powerful tool available in order
to create value and eliminating waste. The seven wastes presented by the theory are
transportation, inventory, motion, waiting, over-processing, over-production and
defects. There are five lean principles, which are described below.

• Specify value: The value intended is the ultimate value for the customer.
• Identify the value stream: The value stream includes all the actions needed to get
the product the customer.
• Flow: Includes the processes of the value-creating actions.
• Pull: Use a pull mindset instead of push.
• Pursue perfection: There are always room for improvement.

With these principles the process can be perfected and the wastes can be reduced.
(Womack & Jones, 2008)

A good way to start to incorporate the lean thinking is by identifying the value added
flow of the production system and to calculate the value added percentage. This helps to
identify and remove wastes in order to continuously improve the production system.
The layout of the production system should also be product focused and not process
focused, which can help reduce the material handling, improve visual control and
communication, simplifies product flow and emphasizes customer focus. An increased
visual control is another big part of the lean production philosophy that is embraced by
the concept “andon”, clear signals for notifying about quality or process problems.
(Volvo Cars, 2012i)

A traditional way of production has been the batch-and-queue system, where large lots
are made and then sent to wait in queue for the next operation. Womack & Jones (2008)
explains that converting a batch-and-queue system to a continuous flow with pull
instead of push, will double labour productivity, reduce the throughput time and
inventory by 90 %, lead to half the errors and cut injuries. The authors further discusses
how to successfully achieve a continuously flow by focusing on the product, remove
boundaries of jobs and departments and to rethink the process in order to eliminate
backflow, scrap and stoppages. (Womack & Jones, 2008)

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Just-in-time is an important tool in order to achieve a lean production system. Womack
& Jones (2008) describes it as "producing and delivering just the right item at the right
time in the right amount". To achieve this concept at a low cost, a U-shaped production
layout with multi-function workers can be used. Ohno & Nakade (1996) present a study
where they show the benefits of a U-shaped production layout. The research shows how
workers with multiple functions decrease the overall cycle time and how the U-shaped
production layout is superior to a linear production layout for lines with one or two
workers. (Ohno & Nakade, 1996)

According to Miltenburg (2001), the U-shaped production line can effectively be

implemented when there are many to several products, with a low to high volume. In
other words it can be widely implemented in order to be an effective option in
production systems.

4.6  Level  of  automation  

The first type of automation appeared in the beginning of the 20th century, particularly
in the Ford Motor Company. In their production they implemented what is called fixed
automation, which is a group of technologies with the purpose of performing simple
tasks many times. As the manufacturing evolution continued, the need for more flexible
solutions appeared, leading to the flexible automation. This type of automation contains
blocks of Computer Numerical Control (CNC) machines, which has a computer
dedicated to that single machine tool, making it easy to programme the actions directly
into the computer with a low downtime. Consequently the flexibility increased.
However, if the volume is the only objective, fixed automation is more effective.
(Stecke & Parker, 1997)

Parasumaran et al. (2000) defines automation as “a device or system that accomplishes

(partially or fully) a function that was previously, or conceivably could be, carried out
(partially or fully) by a human operator”, which is a definition that has been refined
from the earlier works by Parasumaran & Riley (1997). This definition focuses on the
relationship between the human and the machine and it implies that the automation does
not have to be all or none of the operations, but can be of many levels. (Parasumaran et
al., 2000)

In the 20th century there has been an increasing trend toward automation. The belief has
been that implementing automated systems will decrease the dependence of manual

33
labour and errors, as well as improve performance, decrease the costs and provide
higher reliability. The operator’s role has therefore changed dramatically from
performing the task to supervising the task, looking for failures in the system. However,
with the increasing complexity of the systems, an increasing trend of large failures has
occurred. An error in the controlling function of the automated system can lead to a
failure since the complexity of the system is too vast for the operator to fully
understand. (Endsley, 1996)

Parasuraman & Riley (1997) states that initially the primary criteria for using
automation were technological feasibility and cost. Furthermore, the general perception
has been to implement automation whenever higher efficiency, increased reliability or
better accuracy could be achieved, or even if the implementation would lead to a lower
cost by replacing the operator. The primary reason that this perception has not lead to
systems fully performed by automated processes, is that humans are better to respond to
changes or unforeseen conditions since they are more flexible, adaptable and creative.
(Parasuraman & Riley, 1997)

Adler (1988) identifies three types of automated processes as design automation,

manufacturing automation and administrative automation. He describes the most
appealing aspect of the automation to be the divergence to what is called Computer
Integrated Manufacturing (CIM), which comes from the possibility to link the different
automation types. The obtained values of the automated technologies are further
described as cost, quality and time. (Adler, 1988)

Moray et al. (2000) discusses the level of automation that is appropriate for a station and
how it can be decided. The level of automation is described as to what level the human-
machine interaction is performed. In order to describe the different levels, the authors
use the Sheridan-Verplank levels (SVLs), which were published by Sheridan &
Verplank (1978). In this system level 1 describes a manually controlled process and
level 10 is fully automated. The list is briefly explained below.

1. Manual control, the human does all the planning, selecting, preparing and
monitoring, up to the point of when the machine carries out the action.
2. The human asks the computer for suggestions and then selects an option from
the given suggestions.
3. The computer spontaneously suggests options for the operator.

34
 4. The computer both suggest options and proposes one for the operator.
5. The computer selects action and implements it if the human approves.
6. The computer selects an action and performs it, but gives the operator plenty of
time to stop it.
7. The computer does the entire task and informs the human of what it did.
8. The computer does the entire task and informs the human if the human explicitly
asks.
9. The computer does the entire task and decides if the human should be informed.
10. The computer does the entire task autonomously.

Moray et al. (2000) concluded that there is no simple answer to the question of what
automation level is the best. Firstly, it depends “on the complexity, difficulty, and
dynamics of the incidents that have to be managed”. It also depends on the goal of the
automation. (Moray et al., 2000; Sheridan & Verplank, 1978)

4.7  Manufacturing  flexibility  

There is a consensus about increased competition on the market going further into the
21st century. D'Souza & Williams (2000) describes the major manufacturing
competitive areas as cost, quality and responsiveness. The responsiveness depends a lot
on the manufacturing flexibility of the company and when studying the definitions
given by the literature, they converge towards being the capability to react to changes in
the company's environment. It also includes the time to make those changes, the costs of
the changes and the efforts needed to do them. (D'Souza & Williams, 2000)

Most of the available theory implies that there is a trade-off between flexibility and
efficiency in production because it is believed that efficiency requires bureaucracy,
which inhibits flexibility. However, according to Adler et al. (1999), a lot of companies
are trying to improve simultaneously on both flexibility and efficiency as a result of the
growing competition. The authors look into NUMMI, a join venture between Toyota
and GM, and conclude that there are four mechanisms that make it possible for NUMMI
to stay both flexible and efficient.

• Better structure of routines with the help of meta-routines

• Job enrichment
• Switching roles between improvement and production tasks
• Partitioning the structure into a changeover team and an operation core

35
The first of these mechanisms primarily increases the efficiency but it also creates
opportunities to increase the flexibility. The following three increases the capacity for
flexibility of the organisation. (Adler et al., 1999)

Vokurka & O'Leary-Kelly (2000) presents a list of 15 different dimensions of

manufacturing flexibility that they have adapted from previous frameworks and
complemented with own review. The list is found below with a description of the
different flexibility dimensions.

• Machine: The different operation types a machine can perform.

• Material handling: The ability to move different parts within a manufacturing
facility.
• Operations: Number of ways a product can be produced.
• Automation: The extent to which the manufacturing technology is housed in the
automation.
• Labour: The range of tasks an operator can perform.
• Process: The set of products the system can produce.
• Routing: Number of routes a product can take through the production system to
be completed.
• Product: The ability to add new products or parts into the system.
• New design: How fast the products can be designed and introduced into the
system.
• Delivery: The ability to respond to changed delivery requests.
• Volume: How the production system respond to increases or decreases of output.
• Expansion: The ability to expand the capacity of the system.
• Program: The length of time that the system can run unattended.
• Production: The range of products a system currently can produce.
• Market: The adaptability of the system to changes in market demands.

The authors mentions that many studies have suggested a hierarchical order of these
dimensions but that there are no study that thoroughly investigates the interrelationship
between the dimension, which is probably a consequence of the complexity of the
variables involved. (Vokurka & O'Leary-Kelly, 2000)

36
4.8  Modularisation  
The fundamental ideas behind modularity are not particularly new. Fixon (2006) found
in his literature research arguments from Swan (1914) that can be looked at as the early
movements of modularity. Swan identifies an engineer who strives towards having
subassemblies of product parts in order to make it easier to customise the products and
reduce costs. Today's situation is slightly different and more complex mainly due to the
highly developed production technologies. This leads to higher customer expectations
regarding product customisation and characteristics which forces companies to learn
how to mass-produce customised products in effective ways.

Sanchez & Mahoney (2005) describes modularity by using two different terms; loosely
coupled vs. tightly coupled. The terms describe to what degree different components in
a product influence other components. In other words, how much a change of design in
a specific part of the product will require compensating design changes in another part
of the product. The author argues that modularity is a situation where the parts are
'loosely coupled' by using standardized component interface specification. Traditionally
companies have had the tendency to develop products with constrained optimization
meaning that a product are developed to reach the highest level of performance within a
certain cost constrain, or developed with the lowest cost needed to reach the lowest
acceptable performance. This type of product development method leads to highly
integrated products that are 'tightly coupled'. Situations like this require an intensive
managerial coordination since a minor change in one component could cause the need
of complimentary changes in another. In other words, if you have 'tightly coupled'
products you also need to have a 'tightly coupled' organisation managed by an authority
hierarchy.

Another approach to the development method which will shape 'loosely coupled'
components is to start with designing standardized component interfaces based on the
function the component fulfils. Changes can be made within the interface boundary
while cross-boundary changes only can be implemented when a higher-level decision is
made to change the product architecture. In a situation like this the organisation should
strive towards having a strong information structure which will work as the glue
combining the different interfaces together. Sanchez & Mahoney (2005) argues that the
concept of modularity should not be limited to increase the flexibility only at a product
development level. Instead it should be spread and applied widely within the

37
organisation to increase the flexibility in departments as for example marketing,
distribution, etc.

Salvador et al. (2002) states that today's production firms face a trade-off between
product variation and operational performance. They also states that both theory and
practice shows that modularity is an effective approach to reach high product variation
with as low operational losses as possible. Loosely coupled modular systems, leads to
the possibility of building different parts of a product at different locations and then put
these parts together effectively in a main assembly line. Besides facilitating for
production effectiveness and product mix, this could also ease decision making in the
process of vertical integration since different products and functions are distinctively
separated. (Ernst & Kamrad, 2000; Novak & Eppinger, 2001; Sanvador et al, 2002)

4.9  Commonality  
In today's manufacturing climate mass customisation is a term that has become more
and more popular to focus on. As described by Jiao & Tseng (1999), the paradigm is the
result of an increased product variety as a consequence of higher customer needs and
the importance to deliver the products at a low cost in order to be competitive on the
market. In order to meet this contradiction, the industry has to "perceive and capture
latent market niches and subsequently to develop technical capabilities to meet the
diverse needs of the target customers". One of the technique challenges to achieve this
balance is to increase the repetition and reusability in mass production, which is enabled
by increased commonality in the design of the product. With increased commonality,
the opportunity to reuse tools, equipment and expertise also increases. Increased
commonality can be achieved by implementing product family architecture (PFA),
which is a way of clustering the product variants into groups in order to find similarities
between the products. This will make the production costs decrease with increased
repetition and reusability as well as rationalise product development for mass
customisation. (Jiao & Tseng, 1999)

Nagarur & Azeem (1999) presents a study about how communality in the component
leads to a more effective manufacturing system and how it is explained as a big factor
towards achieving a higher product variety whilst keeping high productivity in the
production system. The study shows how introduction of communality to the
production system can decrease the makespan and increase the machine utilisation and

38
factor productivity. It also shows that an introduction of increased flexibility also
contributes to a more productive manufacturing system. (Nagarur & Azeem, 1999)

In a study by Heese & Swaminathan (2006) it is pointed out that commonality as a cost
reduction tool might lead to unwanted consequences. The authors discuss how
segmentation and cannibalisation are two reasons why a manufacturing system might
not want to use the same components for different products and how they have to be
taken into consideration when implementing commonality in the production system. If
two car models from different quality classes are produced by similar components, the
customers might ask themselves why they should pay extra for the more luxurious car,
when the cheaper car consists of the same quality components and vice versa. (Heese &
Swaminathan, 2006)

4.10  Material  flow  

In today’s market, lean thinking and agile manufacturing are important success factors.
The need to adapt to changes and the ability to keep the production costs low are both of
high importance to stay competitive. Naylor et al. (1999) states that these factors highly
depend on the efficiency and effectiveness of the whole supply chain strategy. (Naylor
et al., 1999)

The importance of integration of logistics in early phases is also supported by Sage &
Rouse (2009) who states that involving experts from each function is the main purpose
of concurrent engineering. Concurrent engineering is according to Wheelwright & Clark
(1992) an important tool to stay competitive on the market.

Three mayor concepts within logistics concerning the production system at VCC are
replenishment, material façade and re-packaging. Replenishment involves the issue of
bringing the material from the storage or unloading area to the point-of-use with the
purpose to implement the most cost efficient fork-lift-free replenishment method
available. Material façade regards the interface between material handling and the
operator with the vision to decrease the none value-added work performed by the
operators and to obtain a maximum of 80 % filling degree in the material façade in
order to always have some extra room when implementing new variants. Re-packaging
concerns the method and size in which the parts are brought to the material façade from
the unloading area or storage area. The vision is to keep it cost efficient, have low

39
administration work, locate the re-packaging at an optimal place and to optimise the
space utilisation. (Volvo Cars, 2012j)

There are several logistic costs that should be considered with regards to the production
system. Perego (2011) presents a list with the different costs that are associated with
logistics:

• Inventory control
• Transportation
• Picking and handling
• Storage
• Set-up in the production lines
• Packaging
• Lost sales because of stock out
• Information systems
• Obsolete material and products

Perego (2011) further discusses that the sources of value within logistics is reducing the
logistic costs and to contribute to increase the revenues, for instance by improving the
customer service.

4.11  Robust  design  methodology  

Research has shown that the way organisations choose to develop their products and
processes are becoming a more and more important success factor. Robust Design
Methodology (RDM) is a methodology that strives towards supporting the development
of products and processes so that they are less sensitive to variations. This insensitivity
is especially useful in situations where natural variations, so called noise factors, are
present. These noise factors could for instance be variations derived from the
environmental conditions in which the product or process are operating. Hence, this
type of variation can be hard, very extensive or even impossible to control. Therefore, it
is effective to design the product or process so that it can operate as usual even when
variations are present. (Hasenkamp et al., 2008) When it comes to the influence
robustness have on products, one can argue that the geometrical variation of a product is
highly dependent on how sensitive it is towards variations. In other words, one can use
robustness to decrease geometrical variations in products. (Soderberg, 2012)

40
4.12  Implementation  
This section aims to describe critical success factors (CSF) to consider when facing an
implementation step of a tool, method, framework, etc. The goal is to use this
information in the development of DGM in order to facilitate a successful
implementation and usage of the framework.
CSF can be described as factors that are vital for the success of an organisation. Hence,
failing to take these factors into consideration or adapt to them can lead to negative
impact for the business. Coronado & Antony (2002) performed a research aiming
towards finding CSF for the implementation of the six-sigma projects in organisations.
The authors find a set of different CSF, for instance:

• Management involvement and commitment: The management should be

involved in the methodology initiative at the company by supporting and
participating in related activities.
• Cultural change: Be aware of the changes in organisation structure due to the
implementation. When changes occur, people tend to be afraid of the unknown
since they do not understand the need for change. One way to tackle this
situation is to increase and sustain communication, motivation and education
regarding the change.
• Communication: It is important to communicate a lot of practical feedback
linked to the implementation. How the new methodology works, how it relates
to the workers jobs and what are the benefits of using it.
• Organisation infrastructure: Some organizational culture characteristics that
should be present to facilitate the implementation are for instance an established
nature of communication, long-term focus and teamwork. Furthermore, the
organisation needs the have funding enough to carry out the implementation.
• Training: Training of the intended users is key in implementation. The user
should understand why and how definitions as early as possible. There should be
training opportunities for the one who wants it; this will increase the comfort
level of using the methodology.

41
42
 5  Iterative  generation  of  the  guideline  index  
In this chapter, the results and analysis is described. Since the data collection and
analysis of the data is overlapping each other throughout the study, it is clearer to
present the results and analysis of the iterations that this research has included, rather
than to divide them into two different chapters. The purpose is to make it easier to
understand the reasoning behind the results.

The Design Guidelines for Manufacturing are generated continuously through an

iterative approach of collecting and analysing data. The following chapter describes
how the guidelines evolve through these different iterations. The first iteration consists
of the initial study of academic literature and how it is applied to the case study with the
support of internal experts at VCC. The second iteration describes how the guidelines
change when applying the guidelines from the first iteration to pilot interviews. The
third iteration explains how reasoning at the interview rounds forms the guidelines. The
fourth iteration regards how investigation of additional aspects from documents at VCC
and academic literature affect the guidelines. The final iteration describes how
reasoning from the workshop shapes the guidelines. The end of this chapter describes
the completion of the guidelines with revision and judgements, and also how the
document should be implemented to be successful.

Figure 10 Illustrative pictures of analysis iterations.

43
The process of describing how the guidelines are developed requires a distinct
differentiation between hierarchical levels of detail, in which each guideline belong.

Design  
Guidelines  for  
Manufacturing  

Category   Category  

Aspect   Aspect   Aspect   Aspect  

2nd  degree   2nd  degree   2nd  degree  

aspect   aspect   aspect  

Figure 11 Illustration of the hierarchical levels of DGM.

The highest level in the hierarchy is Design Guidelines for Manufacturing, which is the
name and the entire framework. The framework consists of a number of categories that
is the level that can be found beneath DGM. Beneath the categories there are aspects,
which, in turn, consist of 2nd degree aspects and so on. This is how DGM is built up and
a large part of the analysis is concerning what the different levels include and how they
can be related to the different hierarchical levels.

5.1  Iteration  1  –  Literature  checklist  and  basic  concepts  

The first iteration in the process of generating the guidelines is about adapting the
findings from the initial literature study into the situation at VCC. The checklist of
important aspects to consider during production development, described by Bellgran &
Säfsten (2010) and seen in appendix D, is the starting point of this process. The
checklist consists of nine categories, each of which embraces several different important
aspects within the area. As stated in “3.1 A structured way of working” from which the
checklist originates, the checklist grasps a very wide spectrum of aspects. This leads to
that there are aspects that are hard, or in some cases not even possible to apply to the
case study at VCC. Therefore, this checklist is adapted to fit this study through
discussion meetings with experts at ME. Aspects that for some reason do not affect or
cannot be related to the work of production development are left out for now in the
investigation. Of course, a continuously revision of the initial checklist is performed

44
throughout the data collection process, in order to secure that all applicable aspects are
handled.

The high-level categories only undergo slight changes in this early process, mainly
since the focus is to screen and adapt the meaning of the underlying aspects. Although,
the first change in the process is that the category “Market – Strategic level” is
considered to be something that is out of the hands of production development and
therefore deleted. The reasoning behind this is that aspects such as new market
opportunities, market demands, competitors and product price level could not be
controlled in production development. Neither is the daily production development
activities directly affected by these aspects. Also, the category of “Product Concept”
including aspects such as product price, product mix, design, customer adaption,
delivery time and product complexity, is considered to be managed too far away from
the production system and is therefore eliminated. Eliminating these two categories and
its content of aspects is favourable in terms of adapting the literature to the production
development situation, but it still to some extent leaves holes in terms of valuable
knowledge. To ensure that this type of information will be considered, a new category
named “Other” is created with the purpose of handling aspects that not primarily can be
affected by the user of DGM but still is important to understand.

Further discussion with experts regarding the adaption of categories and aspects leads to
a developed version, which could be viewed as an early version of the design guideline
index. This version is used as an input in the pilot interviews in order to see how the
guideline index, generated from literature and subjective thoughts of experts, is
perceived during pilot interviews with other employees at ME. The index is presented
below:

45
Figure 12 Index of DGM used as input to pilot interviews.

In comparison with the changes mentioned above, one can see that the category have
changed a bit. “Other” has turned in to something called “Manufacturing
prerequisites”. The thinking behind the category is still the same as explained before,
but discussions have shown that a prerequisite is a generally accepted term within the
company for describing this type of knowledge. The category of “Company – strategic
level” has been eliminated since its important aspects, when applied to production
development at VCC, seems to have a fit under other categories. The aspect of
investment policy is moved to “Finance” since it in this stage seems to regard financial
strategies for how investments should be handled. Resources and competences is an
aspect which fits perfect under the category of “Work organisation & Personnel” since
it is a question of availability of needed competences. One could of course argue that
this aspect is a financial issue in terms of man-hours, but on the other hand the cost is
driven by a lack of competence within the organisation. The aspect regarding make or
buy strategy is placed under finance because it on a high level has a large impact on
costs.

In addition to the screening and adapting of the literature findings, this first iteration
also allows for the experts to add aspects to the index they feel that the literature left
out. Typical aspects deriving from this process is “16 Losses” and “Bill of process”.
These aspects are added to the index since they are routed and generally accepted within
the company.

46
5.2  Iteration  2  -­‐  Pilot  interviews  
After the initial literature study, the pilot interview checklist consists of 26 aspects,
sorted under six different categories. During the three pilot interviews the guideline
index changes considerably, leading to a guideline index that is used in the actual
interviews. This index is presented in the picture below.

Figure 13 Index of DGM used as input to interviews.

The biggest change from the pilot interviews is the changed number of categories. After
the first pilot interview, it became obvious that one of the categories cannot be
“manufacturing prerequisites”. The interviewee pointed out that roughly all of the
aspects can be looked at as a prerequisite, requirements given from another department.
Most of the aspects were placed under the “manufacturing prerequisites”, making it
overrepresented. This was not the initial thought with the category, but rather that some
aspects are out of the production developers control. After further discussions the
conclusion was that the category should be removed, because the aspects are still
important to take into consideration when developing a production system, even if it is
inhibited by requirements. The prerequisites of the different aspects has to be mentioned
in the guidelines, giving the developer a good understanding of what is out of its hands
and what he or she can have more influence over in production development.

47
Secondly, the category “product characteristics” has appeared in the index. There was
comments from the interviewees that the lack of a product associated category might
lead to an insufficient guideline index, both because the product should be in focus
when developing production systems and because the communication between product
and production development is very important in order to deliver a successful system.
As mentioned earlier, concurrent engineering is an effective tool to use in order to
respond to higher demands on the new product development process (Swink et al.,
1996) and the main principle is to integrate downstream concerns into the upstream
phases of development processes (Yassine & Braha, 2003). By implementing a category
affected by the product development department, the needs of production can be more
easily communicated and implemented into the product from the start. By looking at the
initial checklist by Bellgrand & Säfsten (2010) that can be viewed in appendix D, there
are a category called “product concept” that was removed in the early process because
the aspects under the category was not considered of high importance in the production
development process. After looking further into the chosen aspects however, it was
discovered that several of them would fit well under a product-oriented category. This
led to the creation of the new category and the affected aspects were moved. As can be
seen in the picture above, these are “modularisation”, “geometry” and “number of
product variants”.

“Modularisation” and “geometry” were both moved from “production system”. The
aspects both affect the production system a lot, but rather in a secondary manner. They
are shaped by the design of the product and dependent on how the product is developed.
As Sanchez & Mahoney (2005) describes, it is the correlation between the product
components, described in terms of loosely couple or tightly couple, dependent on how
much the part influences each other. This later on decides how the production system
has to be adapted to be able to produce the product. This said, it is important to note that
production gives prerequisites to product developers, in order for the product developers
not to design something that later cannot be produce. This emphasises the importance of
a good communication between the two departments. Moreover, the concept of
modularisation should not be limited to increase the flexibility at a product development
level, but spread within the organisation to increase flexibility in many departments
(Sanchez & Mahoney, 2005). Also the impact from “number of product variants” on
the production system is important to communicate with the product developers. A

48
“product characteristics” category can hopefully be used to improve this
communication.

There were three aspects moved from the former category “manufacturing
prerequisites” to the category “production system”, namely “cycle time, lead time,
change-over time”, “production volume” and “production life-cycle”. They have all an
evident impact on the production system and were originally placed under “Production
engineering” by Bellgran & Säfsten (2010) in their checklist that can be viewed in
appendix D. That the aspects belong to the category “production system” was also
confirmed in the pilot interviews, since all of the interviewees placed the aspects under
this category.

The aspect “layout” has been put together from the both aspects “lean layout” and
“plant layout”, which existed in the pilot interview index. During the interviews it was
hard for the interviewees to separate the two types of layout. The purpose was initially
to emphasise the importance of logistics when it comes to layout by having a separate
aspect of layout under “logistics”, which would include the layout of the whole plant.
However, it was decided to include both “lean layout” and “plant layout” under one
common aspect and to emphasise the importance of logistics considerations throughout
the entire aspect. The importance of including logistics concerns within the “layout”
aspect was later confirmed in the interviews, which can be illustrated by interviewees’
placements graph below.

Figure 14 Statistical illustration of the interview participants' post-its placement regarding the aspect of layout. The
height of the bar represents the number interviews in which the aspect was put under the category.

However, the importance and concern of lean layout is not minimised by taking it down
to a second-degree aspect. Lean is an important tool in order to create value and

49
eliminate wastes and it can partly be achieved by implementing a lean layout in the
form of a U-shaped production line (Womack & Jones, 2008).

“Energy consumption” is a new aspect under “production system”. It was pointed out
by an interviewee that the aspect is significant in today’s culture, where environmental
considerations are becoming more and more important, which was later confirmed by
other interviewees who thought that the aspect was one of today’s more important
issues. The aspect was put under “production system” because it is mainly there that the
consideration for reduced energy consumption should be implemented in order for the
best effect to be achieved.

Lastly, “number of parts” under “logistics” was added. It was discussed during the
interviews how much “number of product variants” affects logistics by the increased
need for space a higher set of variants leads to. However, the “number of product
variants” is affected by the “product characteristics” just as much. The solution was to
implement a new aspect that affects the “logistics” and not the “product
characteristic”, but at the same time is a result of the problem that arises with an
increased spread of product variants.

5.3  Iteration  3  –  Interviews  

The guideline index used in the interviews consists of 27 aspects sorted under six
categories. After interviewing 11 persons on several different positions at
manufacturing engineering and with different expertise areas, the index was
transformed into an almost finished index. Different factors that lead to changes in the
guideline index are:

• The outcome of the interviewees’ placements of the aspects under the different
categories.
• Arguments of the existing aspects that changes the content of the guidelines.
• Arguments regarding the correlation of the different aspects.
• New aspects suggested by the interviewees.

See section 3.2 for further information about the data collection process. To view all the
graphs of the interviewees’ placements, see appendix E.

The index output from the interviews consists of 23 aspects, still underneath six
categories, and can be viewed in the figure 15 below.
50
Figure 15 Index of DGM, output from interviews

The changes resulting from the interviews are extensive and they are therefore described
one category at a time.

5.3.1  Production  system  

Starting with “production system”, there are several changes. First of all, both “cycle
time, lead time, change-over time” and “equipment capacity” has changed from being
first-degree aspects and can now be found under “production volume” as a second-
degree aspect. Under the interviews there were a lot of connections between the three
aspects, pointing towards that they have a correlation. Examining it even further led to
the conclusion that most of the interviewees thought that production volume leads to the
decision of how well the operations in the production system have to perform. One
interviewee especially pointed out that production volume is a prerequisite from higher
instances that is decided based on forecasts of the customer demand. The interviewee
continued by saying that the performance capacity is then directly dependent of the
capacity of the single station, which can be dimensioned by the “cycle time, lead time,
change-over time” and “equipment capacity”. Hence, the two aspects were put under
“production volume”.

There are two new aspects under “production system” as a result of suggestions from
the interviewees. Several persons thought that “verification” was missing from the
aspects. Both verification in the form of production development verification, which
consists of tools such as pilot plant and digital plant, and running production
51
verification, which aims to increase quality safe methods in the production as well as
including signals and signs in the production flow to easily detect errors and production
defaults. Verification in running production is also a big part of lean production, which
with the help of signals for notifying about quality or process problems, “andon”, can
increase the output quality of the production system (Volvo Cars, 2012i). Furthermore,
“risk management” appears in the index as a result of suggestions from the
interviewees, since they thought that there should be a standardised way of working
with a safer and better delivery. There were a lot of references to the usage of tools such
as Failure Mode Avoidance (FMA) and Failure Mode Effect Analysis (FMEA). Both
these aspects are significant to take into consideration since they both emphasises the
importance of doing the right things in the right way. The costs to adjust errors and
mistakes increases with time and there is a lot of money to be saved by implementing
standardised work routines that can prevent errors in later stages (Alfredson &
Söderberg, 2010).

Two more aspects in “production system” has been somewhat changed from the
interviews. Firstly, “production life-cycle” often confused the interviewees, who
wondered if it was not in fact a typo and was meant to be product life-cycle. However,
the purpose of the aspect was to take the sustainability of the production system into
consideration when developing the system, because it is important to create the system
with the right sustainable requirements. This led to reflections about the aspect and
resulted in the aspect “system sustainability”, with the arguments that it better describes
the purpose of the aspect. Furthermore, it is important to consider the sustainability of
the production system with an economical, ecological and social consideration, which
will be reflected upon by the implementation of this aspect. Secondly, it was for a
moment decided that “16 losses” should be placed as a section under every aspect.
There are losses in every aspect that can be minimised, which can be derived from the
list presented by Ahuja & Khamba (2008) that describes the sixteen major losses within
TPM. However, when discussing the subject further with the department at Volvo Cars,
it was decided that “16 losses” should be its own aspect after all in order to emphasise
the need of the aspect by bringing it higher up in the guideline index.

The last change in the “production system” category is that “energy consumption” has
been moved. The aspect can no longer be found as a first level aspect but was placed
under “physical environment” in the category “work environment”. There was a

52
consensus between the interviewees that the aspect was important to take into
consideration, but perhaps rather as a factor in the external environment that is found
under “physical environment”. Below is a graph illustrating the outcome of the
interviewees’ placements of the aspect “energy consumption”.

Figure 16 Statistical illustration of the interview participants' post-its placement regarding the aspect of energy
consumption. The height of the bar represents the number interviews in which the aspect was put under the category.

The aspect was put under “production system” in the majority of the cases. This
probably is an effect of where the interviewees see the potential of improvements in
reducing the energy consumption, rather than what area the improvements will affect.
The second view is probably the opinion of those who put it under “work environment”.
All the aspects regard the production system in one way or another, since the design
guidelines concerns production system development. In this case it seems more
important to consider what area an improvement of the aspect will affect, leading to the
placement of “energy consumption” under “work environment”. In order to support
this placement one can think of a situation where a decrease of energy consumption
within the production system also will decrease the negative environmental impact on
the factory surroundings.

5.3.2  Product  characteristics  

In “product characteristics” there was not a lot of changes from the interviews. The
first-degree aspects were the same both before and after the interviews. The content of
“geometry” was changed a bit though. A lot of interviewees mentioned robustness as an
aspect to consider in the production development. Since robustness could be thought of
as a way to affect geometry variation of the product (Söderberg, 2012), it was suitable
to put it as a second-degree aspect under “geometry” together with “variation”. Also,

53
the content of “modularisation” was discussed a bit. The outcome of the placements is
shown below.

Figure 17 Statistical illustration of the interview participants' post-its placement regarding the aspect of
modularisation. The height of the bar represents the number interviews in which the aspect was put under the
category.

The placements under “product characteristics” are in majority, but there are also
connections to the “production system” and “logistics”. Hence, it was decided to
discuss these aspects as well in the guidelines, in order to cover the affected areas.

5.3.3  Logistics  
“Logistics” was not changed that much from the interviews, but filled with a lot of
information regarding the guidelines. “Material flow” was placed under “logistics” by
all the interview participants and there was a consensus that the aspect is of great
importance when developing production systems. One of the interviewees, that works
with logistics, say that the traditional way of working was that the production
developers designs the production system and when they are finished it is up to the
logistics department to implement the best possible material flow solution. He says that
if there would be more integration in early phases there would be a lot of money to save.
This also corresponds with the mentioned theory by Wheelwright & Clark (1992) that
the cost of errors and mistakes increase with time. Moreover, there is a clear connection
to the importance of implementing concurrent engineering, by involving different
departments early in the decision-making processes (McGrath, 1992; Sage & Rouse,
2009). Lean thinking in the production system layout is an important tool in order to
achieve optimised material flow, by implementing continuous material flow with a pull
approach (Womack & Jones, 2008). This emphasises the importance of cross-functional
integration between the departments in the upstream and downstream functions

54
(Wheelwright & Clark, 1992) and an optimised material flow can also lead to
minimising loss number nine of sixteen losses, which refers to the logistic and
distribution solutions of the production system (Ahuja & Khamba, 2008). These and
many more, are reasons for why “material flow” is so important to focus on when
developing production systems.

“Number of parts” had some interesting inputs during the interviews. The graph
showing the interviewees’ placements of the aspect is presented below.

Figure 18 Statistical illustration of the interview participants' post-its placement regarding the aspect of number of
parts. The height of the bar represents the number interviews in which the aspect was put under the category.

Most of the participants placed it under “product characteristics”. However, most of

the times this happened it was when the participant had not seen the “number of product
variants” aspect yet. Some of the times the interviewee even thought of changing
“number of parts” to “logistics” when they did see the aspect about the variants, but
decided that it could just as well remain at the “product characteristics”. The purpose
of the aspect was to take the concerns that the increased set of product variants brings to
logistics into consideration, which was somewhat confirmed by the reasoning of the
interviewees. One interviewee says that some variants are only made about once a year,
which means that the parts has to be in store for that specific variant, even though it
does not bring enough revenue to uphold the storage costs.

5.3.4  Finance  
The appearance of the category “finance” has changed considerably. Of the six initial
aspects, only three remain. Firstly, “make or buy strategy” has been changed from
being a first-degree aspect to a second-degree aspect underneath “investment policy”.
During the interviews there were a lot of connections between the two of them. Many of

55
the interviewees mention how make or buy is a question that is handled under
“investment policy” and how it comes from what the current strategy within the
company is when it comes to outsourcing. After talking to an expert at ME that works
with the financing a lot, it was agreed upon that “make or buy strategy” fits under
“investment policy”, since it is a part of the company’s strategy, but that the policy
contains more strategy related issues than what the company should outsource or not.

“Investment level” remains as it was and works like a complement to the “investment
policy”. The policy regards the strategies of the company when it comes to financing,
whilst the level tends to the issues of the actual budget. Most of the interviewees say
that the “investment level” is about coping with the budget that has been decided for the
project by higher instances. They state that the Industrial Business Office (IBO) is the
department that decides the budget based on a build-up calculation made in the early
phases of the project. Even though this calculation is based on very uncertain
estimations, the budget has to be followed with only a small margin of error.

Lastly, the “method of calculation” has been changed to “Time Adjusted Rate of
Return” (TARR), because when the interviewees speculated about the aspect, they
instantly went to the TARR-calculations as the only method they used. When talking
further with the expert at ME that handles a lot of financing issues, he states that the
only financing tool that is used in the production development projects is the TARR-
calculations. He continues by explaining that it is an easy tool that can compare the
profitability of different cases, including calculations about pay-off time for equipment
and a machines life-cycle cost. This led to the change to put “pay-off time for
equipment” and “life-cycle cost” under the TARR aspect, making them second-degree
aspects. This leads to a more structured and logical index, where “finance” consists of
the three aspects concerning investment strategies, actual usage of the budget and how
to financially compare different cases of profitability.

5.3.5  Competences  
First of all, the category has changed name from “work organisation and personnel” to
“competences”. The reason for the change was that as it turns out, all of the aspects in
the category concern the personnel and not so much the organisation, making
“competences” a more suitable category name for the underlying aspects. Overall, there
are not so much changes in the category other than name changes. The aspects concerns

56
the same issues but was changed to better describe the content of the aspects. The
interviewees’ placements of the aspects were also confirming that the aspects are under
the right category. Shown below are the placements of “education & training”.

Figure 19 Statistical illustration of the interview participants' post-its placement regarding the aspect of education
and training. The height of the bar represents the number interviews in which the aspect was put under the category.

There are a considerable majority of the placements on “work organisation and

personnel”. The other aspects have similar graphs of the interviewees’ placements.

There is one second-degree aspect that was communicated by the interviewees, which is
“man hours” under “recourses of competences”. There were several comments about
the need to calculate the man-hours and to include the thinking of total cost calculations
into the balancing of resources. The optimisation of the man-hours can be achieved by
implementing a U-shaped production layout with multi-functional workers, which
decreases the overall cycle time (Ohno & Nakade, 1996). The aspect also affects sixteen
losses, since loss number twelve are referring to management losses, which involves the
balancing of man-hours (Ahuja & Khamba, 2008).

5.3.6  Work  environment  

The aspects of “work environment” were not changed during the interviews. There was
an overall concurrence of the interviewees’ placements and opinions of the aspects,
saying that the aspects are important to take into consideration and that they belong to
the category “work environment”. “Safety” did diverge a bit in the placements, though,
which can be seen below.

57
Figure 20 Statistical illustration of the interview participants' post-its placement regarding the aspect of safety. The
height of the bar represents the number interviews in which the aspect was put under the category.

This can be explained by the reasoning of the interviewees that did not put it under
“work environment”. The participants that put it under “product characteristics”
mentioned that the safety is always about the safety for the customer, which makes it a
product aspect. The purpose of the design guidelines however, is that they should be
used when developing production systems, which means that this reasoning concerns a
whole other aspect. The persons who put it under “work organisation and personnel”
discussed that the safety should refer to the safety of the personnel, making it an
organisational issue. This is not at all far from the purpose of the aspect, but there is still
more important to take it into consideration when it comes to consider the work
environment, because it is in this area the safety has to be secured.

5.4  Iteration  4  –  Additional  concepts  and  theory  

The output from the interviews is an almost finished structure of the guideline index.
Additional research within the literature from the academic world and from the
documents at Volvo Cars, results in a valid guideline index with both academic and
organisational support. First of all, the aspect order was investigated and reworked,
making the guidelines easier to grasp. These decisions were made with the help of an
internal discussion within the department, founded in the prioritising of the aspects.
Moreover, several aspects were investigated, with a focus on those that had been
mentioned a lot during the interviews.

An investigation was made on the aspect “operation sequence”. Beneath the aspect,
Bill of Process could be found as a second-degree aspect, which is a sequencing tool
used at Volvo Cars. However, from the interviews it became clear that for most of the

58
employees the BoP was equal to the operation sequence. A study was made of the topic
showing that the tool is under progress, with the purpose of consisting of a full
description of the operation sequence at VCC by showing the sequences on several
different levels (Strategic Planning & Control, 2012). Since the DGM is implemented
with the purpose to follow the VCC strategy and the development of the company, the
aspect was renamed to “Bill of Process – the operation sequence”.

One other change in the guideline index was under the category “product
characteristics”, where “modularisation” has gone from a first-degree to a second-
degree aspect underneath the new aspect “product flexibility”. This was developed after
investigating modularisation in the academic literature. It turns out that mass
customisation, the paradigm to lower the production costs whilst increasing the product
variety as a result of meeting the customer needs, can be achieved by increasing the
product flexibility with tools such as modularisation and commonality (Jiao & Tseng,
1999). Hence, the aspect was renamed “product flexibility” and consisted of the two
second-degree aspects “modularisation” and “commonality”. Using modularity in the
products is an approach to reach higher product variety with a low trade-off towards
operational costs (Salvador et al., 2002) and the mentality of modularisation should be
spread throughout the company, since there is not only product development that can
benefit from the increased flexibility modularity brings (Sanchez & Mahoney, 2005).
Increased commonality in the product leads to a more effective manufacturing system
(Nagarur & Azeem, 1999), because it increases the repetition and reusability in
production, which enables the opportunity to reuse tools, equipment and expertise (Jiao
& Tseng, 1999).

During the interviews there were several remarks about how important it is to have a
good system for lessons learned in the company. None of the interviewees had any
concrete suggestion on how this should be done however, which held the aspect out of
the guideline index. When asked about if they new anything about design guidelines,
many of them mentioned the design guidelines document that exists in product
development. By investigating one of these design guidelines documents, it was clear
that the guidelines were much more narrow and specific than the intended guidelines
resulting from this thesis (Volvo Cars, 2012a). However, it did have a comment about
how the document should be developed with lessons learned. This led to further
discussions about the subject involving an expertise at ME who works a lot towards

59
product development, leading to the implementation of the aspect “lessons learned”
under the category “competences”.

“16 losses” is an aspect that is important to communicate throughout the company,

according to the employees at ME. After finalising the interviews, a research was made
on the subject both internally and externally. There is much information on the subject
in the academic world. One of them is presented by Ahuja & Khamba (2008), who
describes the sixteen major losses within TPM. There was also an adapted version of the
sixteen losses at Volvo Cars (2012). This framework was better suited for the company
and also easier to understand with a VCC mind-set, which led to the conclusion that
there should be more focus on the Volvo Cars adapted version of sixteen losses in the
design guidelines, because it is easier to understand for the intended user.

Another hot topic during the interviews was “lean layout”. This was for the time being
a second-degree aspect, but it turns out that the thinking within Volvo Cars about layout
leant more and more towards a lean mind-set. The information on the topic in the
academic literature is vast and also internally there is a lot of information to be found.
The benefits from lean layout is stated by Womack & Jones (2008) to be increased
labour productivity, reduced throughput time and inventory, lead to decreased errors
and cut injuries. Lean layout also enables continuous improvement of the production
system by easier identifying and removing wastes and having a better customer focus by
using a continuous flow with customer pull approach (Volvo Cars, 2012i). Because of
the direction in which VCC is going concerning lean layout, and also because of the
stated advantages of the philosophy’s implementation in the layout, “lean layout” was
promoted to a first-degree aspect, replacing the previous “layout”.

As a result of the interviewees’ placements of the aspect “level of automation”, there

was no doubt that the aspect belonged to “production system”, as seen in the graph
below.

60
Figure 21 Statistical illustration of the interview participants' post-its placement regarding the aspect of level of
automation. The height of the bar represents the number interviews in which the aspect was put under the category.

However, the speculations of the interview participants included several of the other
categories, such as “financing”, “product characteristics” and “work environment”.
For instance, it was said that the question about automation was highly affected by the
investment level of the project, that automation could be a necessity because of narrow
geometrical requirements and that automation sometimes has to replace manual work
labour because of bad working conditions. The speculations about the topic led to an
investigation, where an immense amount of academic literature sources were found.
The importance of the aspect was validated because of the many issues that the aspect
regards. According to Endsley (1996), the increased complexity of the systems as a
result of increased automation has led to a growing trend of large failures in the
systems, since the complexity of the systems gets too vast for the operator to
understand. There is also a large focus in the literature on the norm of using a high level
of automation. Initially, the norm was that automation was implemented whenever it
was feasible and the costs could be reduced as a result, but that the reason this
perception has not led to fully automated systems is that humans better respond to
changes since they are more flexible (Parasuraman & Riley, 1997).

“Flexibility” was another topic that was discussed a lot during the interviews. One
interviewee stated that there are three main types of flexibility, namely volume
flexibility, model flexibility and flexibility of change. After researching the topic, a list
with 15 different dimensions of manufacturing flexibility presented by Vokurka &
O'Leary-Kelly (2000) was found. The dimensions can in turn be divided into larger
clusters, for instance volume flexibility, model flexibility and flexibility of change.

61
Therefore, these three types of flexibility was placed as second-degree aspects under
flexibility in order to involve the important parts of flexibility in the guidelines.

5.5  Iteration  5  –  Workshop:  What?  Why?  How?  

When the guideline index enters this phase, it consists of a finished structure as well as
important guidelines and considerations that the aspects include. However, it is not
decided in what shape and form the guidelines tool should be presented in order to most
effectively be understood and implemented in the organisation. Under the
implementation section of the interviews, there were several remarks about how
important it is that the purpose of implementing a new way of working is communicated
to the employees in order for them to adapt to the change. Furthermore, it was discussed
how important it is that the tool is understood, which leads to the need of a standardised
delivery of the guidelines that is easy to grasp. As a result of these comments and
further reasoning, each aspect was decided to consist of three parts, what, why and how.
What, describes the content of the aspect and the different second-degree aspects it
includes. In why, it is explained why the aspect is important to consider when
developing production systems. How, consists of the guidelines and considerations that
the aspect regards.

A workshop was used in order to motivate the importance of the aspects. The workshop
involved the department of SP&C with the objective to compare the aspects with the
performance objectives at VCM. This motivates the importance of the aspects as well as
it aligns the aspects with the strategy of the company. The idea of the comparison
derives from the operation strategy matrix presented by Slack & Lewis (2008). The
matrix consists of an intersection between the market requirements and the operation
resources. Adapted to this research, the intersection instead consists of the aspects in
DGM and the performance objectives of Volvo Cars Manufacturing, the QCDISMEL.
During the workshop the different aspects were compared to the performance objectives
in order to find connections. As Slack & Lewis (2008) states, it is important to focus on
the critical intersection and to specify these in order to get a good understanding of the
influence they have on each other. After completion of the workshop, the results were
used in the why section of all the aspects. Since the QCDISMEL is widely used and
acknowledged among Volvo Cars’ employees, the guidelines are now motivated with
the performance objectives that they work with every day. This hopefully simplifies the

62
implementation of the guidelines as well as gives the users a good understanding of why
it is important to regard the aspects in DGM.

5.6  Final  version  

The design guideline index has been finalised and the aspects are motivated with
alignment to the VCC strategy. The final guideline index is shown in figure 25 at the
end of this section. It consists of six categories and 24 aspects. The structure is finished
and the information about the guidelines that has been researched is formed under each
aspect. However, as earlier mentioned this is not comprehensive enough to include all
the important guidelines within each aspect. In order to exemplify how the potential
future document of DGM can look like, a demonstration version of “material flow” is
made. This means that the aspect regarding the material flow is more extensive than the
others aspects and can be used as a reference in future development of DGM. A
discussion with an expert in logistics at Volvo Cars was held, leading to rather extensive
information regarding production development guidelines within “material flow”. This
said, the guidelines regarding material flow should as well be developed in order to
include all important guidelines. In order to view the “material flow” from the finalised
version of DGM, see appendix A.

5.6.1  Aspect  example  –  Verification  

This section illustrates the aspect of “verification” included in DGM. As mentioned
earlier, the aspect is structured into what, why, and how in order to use a more user-
friendly layout. This example aims to bring a better understanding to the reader
regarding to what extent and detail the different aspects are developed.

What?
Verification is about gathering evidence to support that the product and production
meets the initial set of requirements and specifications. The topic is handled with two
different perspectives:

• System development verification - to find the best solution and prepare for
changes.
• Running production verification - to hinder quality issues in running production.

Why?

This aspect is relevant and important to take into consideration since it relates to and
affects the VCM performance objectives as follows:

63
 • Quality: The quality of products and processes can be increased through
verification since the aspect facilitates the finding and choosing of the best
available solution early.
• Cost: The aspect can cut down on costs by identifying potential problems and
improvement potentials in early phases.

How?

System  development  verification  

The most important guideline regarding verification is to only implement reliable and
thoroughly tested products, processes, systems and routines. When the verification level
is high, the implementation will most certainly be successful.

Virtual  verification  
Use computer simulation tools for evaluating and
comparing alternative design solutions in a digital
plant. Strive towards choosing the solution that
best meets the customers’ needs. Do not stop
simulating just because the design is implemented,
study new simulations continuously in order to test
and improve the system design. All simulations
should be based on estimated numbers, e.g. cycle
Figure 22 Example of virtual verification software
times, repair time, machine downtime, reject rates,
etc.

Physical  verification  
When a concept has been verified through simulations, its validity should be further
tested in the pilot plant. The testing in a physical environment should involve persons
from commodity departments as well as production operators.

Running  production  verification  

Design equipment and supporting processes to continuously prevent and detect quality
issues.

64
Figure 23 Andon illustration.

Provide the production system with real-time visual management (lights, screens,
signals, etc.) in order for the operator to get a good overview of the system and to detect
abnormal conditions.

Strive towards implementing fail-safe sub-systems in the production, in order to secure

that defects are never passed on e.g. force gauge, light sensors, etc.

Process flow

Figure 24 Illustration example of a fail-safe system

65
Figure 25 Final layout of DGM index

66
5.7  Implementation  
Since this thesis aims towards creating the framework of DGM and investigating
success factors of implementation, rather than actually carry through the
implementation, this part of the thesis is divided into two sections. The first part grasps
the findings regarding how the DGM should be designed and developed in order to
reach success, whilst the second part consists of findings regarding in what way the
framework should be implemented.

5.7.1  Further  development  of  DGM  

The data collected during this thesis points towards a common set of prerequisites for a
successful future development of the framework. First of all, the developer has to have a
clear understanding of to whom the guidelines are developed. Without understanding
the customer and his or her needs, there is a risk that the message will be unclear and
misinterpreted along the way. Linked to this, one of the interviewees in this research
stated that the level of complexity is also important to take into consideration. The
opinion of the interviewee is that if the complexity of the guidelines is either too low,
meaning that no new information is brought to the table, or too high, meaning that the
information is too complex for the user to understand, there is a risk that the guidelines
will not be used at all. Another common argument mentioned by the participants during
the interviews is the importance of having the intended users involved in the
development of the framework to as high extent as possible. The argument is based on
the belief that this will reduce resistance of change and actually support the process of
adapting the guidelines into standard routines.

The guidelines should be updated by lessons learned. This was described during the
interviews to be a problem at VCC, since there is a lack of common document in which
the lessons can be saved. By updating DGM with lessons learned, it would enable
continuous improvement of the production development processes and help the
employees to standardise the lessons learned procedure.

Finally, the most common remark of the interviewees regarding the implementation is
the importance of clearly stating the aim of the framework and the benefits of using it.
This argument is aligned with what Coronado & Antony (2002) states as important for
implementation in their mapping of CSF. Their research presents clear communication
of aims and benefit to the users as one of the CSF of implementation. This is one of the

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reasons why all the guidelines should be presented in terms of what should be handled,
why it is important and how it should be treated. It is crucial that the further
development of the guidelines will follow this design in order to maintain a standardised
structured overview of the document.

5.7.2  Future  implementation  of  DGM  

Interviews have shown that there are several important things to take into consideration
in order to facilitate a successful implementation of DGM. One important issue is
regarding the fact that the implementation will involve first-time-users, which was
stated by some of the interviewees meant that there is a need of developing a training
package. Firstly, the training should consist of a brief presentation regarding the aim
and purpose of the framework. Secondly, a hands-on case should be performed where
the education participants get to practice the usage of the framework. Lastly, the
participants should be assigned a framework sponsor for future support when using
DGM in practice.

The interviewees also pointed out a number of important things to consider in order to
keep DGM frequently used and valid after the implementation. The interviewees
especially pointed out the importance of getting the management committed to the
framework. Meaning that managers at a higher hierarchy level should allocate time for
the user to work with DGM, and frequently ask for the results of the usage. Several
interviewees also stated that some sort of summative checklist could facilitate and make
this communicating process more standardised and effective. Furthermore, the
interviewees said that it is crucial to decide who is responsible for developing the
framework. One of the interview participant explicitly said, “shared responsibility is no
one’s responsibility”. Therefore one can argue that it is vital that the further
development always should be connected to for instance a manager or a department,
which clearly have the responsibility for this specific development. Since the framework
evolve several fields of knowledge and departments it is also important to have a good
communication channel regarding how DGM is used in various ways. The “material
flow” aspect can be used as a demonstration for how the other aspects and guidelines
can be further developed into a more detailed level.

The interviews also derived interesting information regarding the layout of DGM. The
participants stated the importance of having an actual document to screen, rather than a

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slide presentation. This would form a more professional expression and open up for
further developments within the standardised framework. In order to avoid the risk of
having the document perceived as too heavy and complex, the interviewees suggested to
use simple and illustrative pictures connected to each aspect.

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70
6  Discussion  
In this chapter, there is a discussion of the findings that includes; the comparison
between the final guideline index and the origin of the research, some of the problems
that have occurred, the validity of the results and how they are aligned with the strategy
of the company, alternative research direction and potential future opportunities, the
importance of the guidelines from a sustainability perspective.

6.1  Initial  research  considerations  

In the beginning of this research, there was just a faint idea of what the design
guidelines might be. The product development department have over the past years
worked on design guidelines for developing products, which are specific for the
different sub-systems that occur in the automotive industry (Volvo Cars, 2012a). But
how can this kind of guidelines be applied to the production development processes? Is
there a way and form in which the guidelines can be presented and used when it comes
to developing production systems?

These were the initial questions in this study. There are a lot of different tools,
documents, guidelines, policies, strategies and plans when it comes to developing
production systems at VCC. However, the problem is that the company needs a
collected framework that can support the decisions during the production development
projects at ME, which is supported by the reasoning of Bellgran & Säfsten (2010) who
states that a structured approach brings a more holistic and logical decision process.
Most of the employees working with these projects have done so for a long time and
they do their jobs on routine rather than with the help of a standardised way of working.
This might lead to a divergence of the production system output, since there might be a
lot of different opinions of how the production system should be designed. And what
happens when there are new production developers that do not know what to do? Who
do they seek for consultation if the more experiences developers are not available?

When starting to scan the academic literature for help within the process of working
with production systems in a structured and standardised way, the framework presented
by Bellgran & Säfsten (2010) was found. The authors presents “a structured way of
working” including the important steps to consider during the production system
development process, from project initiation to running production. This is a guide for

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what to include throughout the whole project, which makes it a good start for this study
but far from a solution to the lack of guidelines at ME. The primary reason for this is
that the framework describes the steps in the form of a timeline when working on the
production system development process. The idea with this study is to deliver guidance
that is not dependent of in which phase the project is, but rather regarding different
production system aspects. Moreover, the framework also includes unwanted elements
such as preparing the investment request, development planning, production system in
operation, etc. The projects for which these guidelines are intended for, ranges from
project start to production first job, which excludes several of the steps that are
presented in the “a structured way of working”.

In addition to “a structured way of working”, Bellgran & Säfsten (2010) presents a

checklist of important aspects that the process includes. This checklist is the start of
what later on becomes the finished Design Guidelines for Manufacturing. As with the
timeline process framework, the checklist includes several aspects that are not
applicable in DGM. However, it is a wide framework that works as a good foundation.
It is better if the foundation is too wide than too narrow, since a wide aspect range can
be tested against Volvo Cars Manufacturing and narrowed down to a more specific and
VCC applicable framework. With a narrow starting point, the risk of missing some
important aspects is much higher. This said, the checklist presented by Bellgran &
Säfsten (2010) does not include all the aspects that are included in DGM. There are
several other aspects that have been highlighted during the study and included into the
guideline index.

6.2  Comparison  between  starting  point  and  end  results  

When looking at the differences between the starting point, which is the checklist, and
the resulting document DGM, there are some notable changes that have been made.
Instead of nine categories there are six, and almost every category has been renamed. A
probable reason is that the checklist covers a wider process range than DGM. The
changes in category names are a result of making the guidelines more adaptable to the
VCM language and to better fit the aspects that are the outcome of this research. In
addition to the fact that the checklist is founded in a wider process range than DGM, the
structure of the categories in DGM is connected to different departments in another way
than the checklist. For instance, the category “Company – Strategic level” of the

72
checklist contains aspects that is divided between several of the categories in DGM,
because the company strategy should be established within all the operations of the
company. In other words, the company strategy should be embedded in all the
categories. The categories in DGM are also more specifically connected to the different
departments. “Production system” is connected to ME, “product characteristics” is
connected to product development, “logistics” is connected to the logistics department,
and so on.

Similar to the categories, the aspects have been strongly reduced from the checklist
presented by Bellgran & Säfsten (2010) to DGM. This is probably also a consequence
of the fact that the checklist covers a wider process than DGM. It is also a result of the
reason that a lot of the aspects have been sorted under other aspects. For instance,
“cycle time, lead time, change-over time”, “availability” and “equipment capacity” are
all included as second-degree aspects under “production volume” and “control
principle: push/pull” and “work in progress, buffers” are included in the aspect
“material flow”. These regroupings are an outcome of the interviews and the
discussions that have followed. If a strong connection between the aspects was
discussed, it sometimes led to a change where first-degree aspects became a second-
degree aspect and vice versa.

In many cases, an aspect could be located in many different places of the guideline
index. Often it was a question of how to approach the aspect. For instance, “energy
consumption” was previously in the category “production system” but was moved to
“work environment”. It has a clear connection to “production system” since it is there
that the changes and implementations regarding the aspect can be done in order to affect
the energy consumed. On the other hand, the outcome of the aspect is a question of
influencing the external environment, which can be found as a second-degree aspect in
“work environment”. In other words, the aspect can be placed on both locations. Since
it seemed more important to take the aspect into consideration as a factor of the external
environment, it was placed under “work environment”. Another example of a problem
that could arise is the aspect “number of product variants”. The aspect affects the
logistics, because the number of parts that has to be taken care of is directly correlated
to the number of product variants, which lead to the introduction of the new aspect
“number of parts”. In this way the aspect is treated in both categories. It is important to

73
note that decisions like this might include some subjectivity, but that the aim has been
to remain as logical and objective as possible throughout the research.

Similar to this reasoning about how aspects can be perceived and interpreted, the
aspects and guidelines can also be perceived differently from person to person in
accordance to importance. This can mean that persons working with the guidelines rank
the importance of the guidelines differently and ignore one guideline in favour for
another one. Even if the aspects are perceived in the same way, situations can occur
where guidelines are contradicting each other and therefore force some sort of ranking
in-between the guidelines. A situation like this could be when the design of a
manufacturing process concerns several aspects for instance costs, operator ergonomics
and product quality. Guidelines related to these types of aspects runs a high risk of
being contradictive and can therefore lead to trade-off decisions. As mentioned in
delimitations (section 1.5), the ranking and contradictions in-between the aspect is
outside the scope of this research, yet it is an interesting topic that deserves some
attention and discussion. The reasons why this topic is not included in this research are
many, apart from that the scope already is large within the time frame; the part was
mainly left out since it was considered that involving this topic would bring too much
complexity to DGM. The vision is that DGM will be a document that, when
contradictions occurs, will raise the question rather than calculating the exact answer. It
is the researchers’ unambiguous opinion that this step would require a more case
specific adapted version of DGM.

6.3  Workshop  reflections  

The workshop was held in the end of the research in order to validate the guideline
index and the aspects’ alignment with the performance objectives at VCM, the
QCDISMEL. This enriches the aspects with the purpose of why to include them in the
production development process. By comparing the aspects with the performance
objectives at VCM, it motivates the use of the guidelines in a way that appeals to the
employees. Since they are already working to implement production systems that
enhance these objectives, the implementation of DGM is simplified. This is why one of
the most important properties of this research is to implement a solution that consists of
several dimensions. If the resulting guidelines would consist of only theory, the
employees would have a hard time to apply it to their situation at VCM. In the opposite

74
way, if the information in the guidelines only consisted of the opinions of the
employees, the production development process be worse than the competitors since
there might be new effective work processes available that the employees does not
know of. By uniting the information from both external and internal sources and then
align them with the strategy of manufacturing, the user can see the purpose of using the
guidelines from all the angels.

The result from the workshop resulted in the why descriptions under the aspects in
DGM. The figure below illustrates how often each VCM objective was linked to the
aspects in DGM, as a proportion of the total number of connections.

Figure 26 Statistical illustration regarding the link between DGM aspects and QCDISMEL

“Quality” and “cost” together fill 49 % of the connections between the performance
objectives and the aspects. This is probably a consequence of the fact that DGM is a
document that concerns the development of production systems, and that quality and
cost are two main competitive areas in manufacturing (D’Souza & Williams, 2000). As
illustrated in the graph above, “leadership”, “safety” and “environment” are connected
to few of the aspects in DGM. In the performance objectives at VCM, “leadership”
does actually have brackets around it, indicating that it is not as highly involved in the
actual manufacturing performance as the rest of the objectives. However, it is still an
important objective to consider from a company perspective. For one, management
involvement and commitment is a critical success factor in order to implement changes
in a company (Coronado & Antony, 2002). “Safety” and “environment” are two
objectives that are both important, but have dedicated aspects in DGM, leading to the
outcome that they are not connected to the other aspects as much. Both of the objectives
are handled under the category “work environment”.

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6.4  Thoughts  on  further  development  

During this research the focus has been to develop a guideline index that can work as a
framework for the whole production development. This means that the guidelines within
each aspect is not fully developed and only consists of the guidelines that were collected
whilst forming the guideline index. However, one aspect was developed a little bit
further, namely “material flow”. The aspect was discussed with an expert within
logistics at ME, leading to several concrete guidelines. This is meant to work as a
demonstration guideline for future development of DGM. It gives an idea of how the
rest of the aspects can be filled with information and how DGM can look if it continues
to be developed. A demonstration aspect might help with the implementation of DGM,
since it clarifies the meaning of the tool. Moreover, since the guideline index was
formed so that each category is connected to a certain department in the company, it
eases the possibility to continuously improve DGM. Each aspect can be delegated to
experts within the aspect area, which enables that the aspects are filled with valid
information about important guidelines and considerations in production development.
Furthermore, it can work as a source where lessons learned are saved in order to
continuously improve the development process. For instance, a meeting can be held
each year where the past years lessons are discussed and implemented into DGM. Other
than improving DGM, it would also enable the possibility to save the lessons learned in
a document, which have been understood to be a current issue at VCC.

6.5  Alternative  research  directions  

As earlier mentioned, the focus of the research has been the guideline index framework.
One alternative focus with the research could have been to focus on several of the
important aspects and develop them into containing concrete and graspable design
guidelines. Instead of interviewing a broad spectre of expertise within ME, experts
within the areas of the aspects could be interviewed, in the same manner as the
demonstration aspect was developed, but with further depth. This would give ME some
instant guidelines and considerations within a few selected aspects of additional
importance. However, the aspects would still have to be chosen somehow, which
insinuates the need of starting the alternative research in a similar manner as the
research in this thesis. By stopping to investigate the correlations and influence between
the aspects and the importance they have in production development processes, this

76
could lead to the conclusion that an aspect with low importance could have been
developed whilst an aspect of more importance is not. Furthermore, it would be much
harder to continue the development of DGM. There would sooner or later be needs of a
research of an optimal guideline index in order to know what aspects to continue
developing. This supports the course of this research. The foundation of DGM is now
set as a result of the guideline index and future development of DGM would consist of
filling the document with concrete guidelines. The index could also be used on sub-
systems in the production system in order to acquire even more concrete guidelines.
This would increase the similarities with design guidelines at product development,
which have guidelines for specific sub-systems of the product (Volvo Cars, 2012a).

There were many decisions in the beginning of the study concerning the methodology.
With different choices in the early phases, the outcome of the research would change
considerably. One of the discussed alternative study approaches was to do a
comparative design rather than a case study design. This implies the need of another
case to study in order to compare the different cases. This could lead to a better result
since the two cases might have different speciality areas. However, it is hard to get the
hold of another case to study. Nonetheless, if the possibility would arise, a further
research is suggested in order to improve the results. A second methodology decision
concerned the interview structure. The chosen structure was semi-structured interviews,
but the structured interviews were also discussed. With structured interviews the
outcome would be more based on quantitative results, similar to the interviewee’s
placements of the aspects during the interviews, seen in appendix E. In order for this to
be possible, the interview guide would have to be more direct and easier to summarise.
The problem with the results would have been that the analysis of DGM index would be
different, since a lot of the changes in the index were a result of the arguments of the
interviewees. The aspects in DGM would be more similar to the initial checklist by
Bellgran & Säfsten (2010), seen in appendix D. This means that the aspects would be
less adapted to the processes at VCC, which can be seen as a decreased quality of the
index. Because the outcome of the study is believed to be improved with semi-
structured interviews, the confidence about the chosen approach is still high. Lastly, the
data analysis strategy was discussed in the beginning of the research. An adapted
version of Grounded theory was used instead of using an Analytical induction approach.
With the use of the later, each interview would have been unique, since the hypotheses
would change after each interview. The end results could possibly have been similar to

77
the results in this thesis, but the workload would have been much higher. The interviews
would not have been comparable either, since the hypothesis would change between the
interviews. Hence, to choose an adapted version of Grounded theory is still believed to
be the best choice when analysing the data in this research.

6.6  Impacts  of  DGM  implementation  

When looking at the present state at VCM, the implementation of DGM can increase the
stability at ME, since the information sources is gathered in one master document.
Though, not all documents are suited to be included in DGM. The product development
requirements are not meant to be included since it explains too detailed information.
However, it has been hinted by some interviewees that the implementation of DGM
may decrease some of the requirements since it sometimes includes content that would
better fit in the form of a guideline. With the lack of a guideline document it does
instead end up among the requirements, which can be bad for several reasons. For one,
the product developers might think that the requirements are not always accurate and
necessary to apply. It also increases the number of requirements, which according to
several interviewees are considered to be too vast. Another problem with the present
lack of standardised processes is the amount of different strategies that exists. Many are
contradicting and a strategy is usually pretty vague and lacks concrete information of
how to act in certain situations. It is also interesting to reflect upon how DGM will
change if the production system changes. If that there is a big change in the production
system the whole sequence of the production flow will change making the BoP a lot
different. However, unless the thought of how the production system should look like
changes, DGM stays pretty much the same as it did before since it does not contain the
actual tool of BoP, but rather a suggestion that the tool should be used. This makes the
document more flexible to change than the actual tools. Though, it is important to keep
the document updated because the perception of the perfect production system will
change over time. These changes together with lessons learned should be implemented
into DGM to keep the document valid and up to date.

The main question is to what purpose the design guidelines should be used at ME. If
DGM is developed into general guidelines, the opportunity to reflect over the different
issues and difficulties when designing an optimised production system is acquired. If
the guidelines are even further developed and applied on sub-systems as earlier

78
described, there might be even more concrete guidelines as a result. The problematic
aspect with the latter is that this leads to several documents, which might lead to
confusion of ownership and increase the management needed in order to develop the
guidelines continuously. With one master document, the process of lessons learned and
development of the guidelines are simplified. Even if one or the other direction is taken,
DGM is now built on a valid foundation that has been confirmed in both the academic
literature as well as within VCC. There are many opportunities to develop DGM and
this study has enabled that.

6.7  Expected  effects  on  sustainability  

A further development of the design guidelines is also encouraged from a sustainability

point of view. VCC can gain from the implementation of the guidelines on an
economical level by standardising the work procedures, easier being able to spread
information within the company and by having an easier way to make use of lessons
learned. This can ensure that the projects are performed right the first time, which leads
to saved money because problems are handled earlier in the process (Alfredson &
Söderberg, 2010), and continuously improving the process with the help of lessons
learned enables the possible to only make mistakes once. The guideline index also
covers environmental issues, for instance under the aspect “external environment”. By
further development of the aspect, the ecological sustainability is improved. Lastly, one
of the main uses of DGM is to increase the communication within VCC. To be able to
spread the objectives of ME with other departments and to take other departments
concerns into consideration when making decisions at ME. This enables an increased
social sustainability by encouraging the need for concurrent engineering to integrate the
upstream and downstream groups of the company (Wheelwright & Clark, 1992).

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80
7  Conclusion  
In this chapter, the research questions are answered, followed by a suggestion of future
research within the area.

The purpose of this master thesis is to improve the structure and standardisation of
production development projects at ME. This is done by the creation of Design
Guidelines for Manufacturing, a framework that aims to give guidance throughout the
production development processes.

What aspects need to be considered in order to prevent complications and secure the
success when carrying out a production development project at ME?

The approach in this thesis is to create an index with aspects that includes guidelines to
consider when developing production systems. The index is developed through
information collected from interviews with experts at ME and from literature, both
internal and external. Lastly, the aspects are compared to the performance objectives at
VCM in order to validate the aspects and to align them with the strategy of VCC. The
result is DGM that consists of 23 guideline aspects within which guidelines and
considerations about production system development exist. DGM is currently an
unfinished framework that consists of the structure but lack the depth needed to give
good guidance in production development. The aspect “material flow” works as a
demonstration aspect, which means that the aspect is further developed in order to
suggest future development of DGM.

How should the aspects be categorised and what needs to be included in the description
of the aspects in order to ease the usage of the design guidelines?

The structure of DGM, seen in figure 25, is the result of a thorough investigation based
on analysis of the data collected in this research. There are six categories, all which
connect to departments of expertise within the category area. This eases the possibility
for further development of DGM as well as the usage of the guidelines by clarifying the
guideline index. Each aspect location under the categories is an outcome based on
analysis of the importance, correlation and influence of the aspect. The aspects are
presented with the three sections what, why and how, so that the user can easier
understand and grasp the aspects. What contains a description of the aspect, which

81
increases the users understanding of the aspect and thus eases the usage of DGM. Why
is a motivation of the importance of the aspects, founded in the performance objectives
at VCM. How consists of the guidelines and considerations that each aspect contains.

What factors affect the success of implementation of the guidelines delivered by this
study?

After researching factors for successful implementation, both by gathered information

from the interviews as well as information from academic literature, it can be concluded
that there are several important key factors. First of all there are some important
organisational issues that have to be considered. Since DGM is a new tool, there should
be a presentation that explains the purpose and benefits of the tool for the first time
users, followed by training that shows how it is used. Why in each aspect is a good
starting point to present the importance of the tool, since it relates to the performance
objectives at VCM. Also, it is important to allocate the responsible of the tool since
“shared responsibility is no one’s responsibility”. Furthermore, the tool should be
standardised into the work process in some way. If it is encouraged to use a tool but
there is no requirement to do so, the tool will be left unused more often than not.
Frequent usage should also be encouraged by managerial commitment. In addition to
the organisational aspects regarding implementation, the layout of the tool is also
important. The tool has to be simple to understand and to use. A document is a good
format for an informational tool. The document should be simple and illustrative with a
clear and standardised layout.

7.1  Future  research  

There are two parts of the future research of DGM. One of them is the research within
each of the aspects that can be used for further development of DGM at VCC. This
development can be done by assigning the aspects to the departments of expertise and
let them fill the document with valid information, or by interviewing persons of interest
that has good expertise in the area of the aspect. In both cases, the demonstration aspect
“material flow” can be used in order to get a consistent appearance and content of the
document. The depth of the aspects can also be narrower by applying DGM to sub-
systems. This will lead to the divergence of DGM, creating several documents that all
consist of guidelines for their specific sub-system. This would increase the similarity to

82
the design guidelines used at product development, but it will also be harder to manage
because the ownership of the documents will be spread between several departments.

The other part of future research that can be derived from this thesis is to investigate the
applicability of DGM on other functions, companies or industries. This thesis has the
delimitation not to investigate the applicability on other cases than on ME at VCC, but
this does not mean that it is not possible to apply the guideline index on other functions,
companies or industries. The guideline index is derived from a checklist by Bellgran &
Säfsten (2010) and adapted to the situation at VCM. The possibility that DGM can be
used and adapted on other cases is fully possible.

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88
Volvo Cars, 2012e. “E-Policy Deployment for Production Teams Training”.

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89
90
Appendix  A  –  Design  Guidelines  for  Manufacturing,  Material  Flow  
3.1  Material  flow  
What?
 
Material  flow  concerns  the  material  handling  activities  in  the  production  system.  It  is  
important  to  embed  the  material  flow  into  the  production  system  in  an  effective  way.  There  
are  three  second-­‐degree  aspects  discussed  under  this  topic,  namely  replenishment,  re-­‐
packaging  and  material  façade.  These  are  more  thoroughly  described  below.  
• Replenishment:  It  involves  the  operations  of  bringing  the  material  from  the  storage  or  
unloading  area  to  the  point-­‐of-­‐use  and  returning  empty  packaging.  The  purpose  is  to  
design  and  implement  the  most  cost  efficient  fork-­‐lift-­‐free  replenishment  method.  
• Re-­‐packaging:  It  regards  deciding  the  most  efficient  re-­‐packing  method  for  one  or  a  
selection  of  parts.  It  can  be  achieved  by  transferring  parts  from  the  original  packaging  
to  a  more  appropriate  size  or  type  of  packaging,  using  downsizing,  kitting  or  
sequencing.  There  are  internal  re-­‐packing,  which  is  done  by  internal  personnel,  and  
external  re-­‐packing,  which  is  done  by  a  logistic  provider  or  by  the  supplier.    
• Material  façade:  It  is  concerning  the  interface  between  material  handling  and  the  
operator,  e.g.  in  final  assembly,  the  area  between  a  production  line  and  the  aisle.  The  
purpose  is  to  decide  and  implement  the  most  cost  efficient  material  façade  layout  that  
has  a  maximum  80%  filling  degree.  
 
Strive  towards  involving  logistic  engineers  in  early  phases  of  production  development.  This  will  
ensure  that  the  design  is  smart  in  terms  of  material  delivery  interfaces.  
 
Why?
 
This  aspect  is  relevant  and  important  to  take  into  consideration  since  it  relates  to  and  affects  
the  VCM  performance  objectives  as  follows:  
• Cost:  Material  flow  is  affected  by  cost  in  several  different  ways,  for  instance,  higher  
work  in  progress  increases  the  cost,  transportation  costs  of  the  material,  man-­‐hours  
can  be  decreased  with  a  better  material  flow  design,  packaging  can  be  optimised  
regarding  the  cost,  the  space  needed  for  storage  can  be  decreased,  etc.  
• Delivery:  With  a  more  effective  material  flow,  the  production  can  be  secured  by  
ensuring  that  the  material  needed  in  production  is  always  available.  
• Medarbetare:  The  interaction  between  workers  and  material  flow  is  a  safety  issue,  for  
instance,  the  material  flow  routes  should  not  intersect  with  the  walking  routes  of  the  
employees  to  avoid  safety  issues.    
 
How?
 
3.1.1  Replenishment  
Vision  
• Minimise  handling  and  administration  work.    
• Deliver  the  right  material  and  amount  on  the  right  place,  on  the  right  time  with  right  
quality.    
• Fork-­‐lift  free  line  feeding.    
 
 
 

1
Strategy
• Assure  efficient  replenishment  by  using  flexible  routes,  group  balancing  and  route  
planning.    
• Automated  line  feeding  for  modules  with:  low  unit  load,  high  frequency  of  transport  
and  long  distance  &  voluminous  packaging.    
• Fool  proof  system  for  sequential  rack  supply.      
• Access  to  all  points  of  use.    
• Fork-­‐lift  safe/free  line  feeding,  start  with  solutions  for  standard  packaging  and  small  
sequential  racks  (<450  kg)  in  highly  populated  areas  and  after  that  continue  with  other  
areas.    
 
Execution
Fork-­‐lift-­‐free  replenishment  
Replenishment  could  generally  be  done  with  or  without  forklift.  The  aim  is  to  have  all  material  
replenished  Fork-­‐lift-­‐free  (FLF).  Therefore,  the  production  system  should  be  developed  to  
support  FLF  delivery  of  the  material.  This  leads  to  several  benefits  such  as  improved  safety  and  
efficiency,  reduced  amount  of  transports,  cheaper  replenishment  equipment,  less  
maintenance  cost  of  packaging,  etc.  All  packaging  (pallets  and  racks)  should  be  put  on  wheels  
(FLF).  If  manual  handling  is  needed  to  put  the  packaging  on  line,  the  max  weight  is  limited  to  
450  kg  due  to  ergonomics.  
 
Distance  from  market  place  
Plan  the  production  system  so  that  the  distance  between  market  place  and  the  point-­‐of-­‐use.  If  
the  distance  is  too  large  (>200  meters)  a  drop  zone  might  be  considered,  which  has  to  be  
considered  in  the  designing  face  of  the  production  development  process.  

Accessibility  
Always  strive  towards  placing  the  delivery  in  rear  end  of  the  machines,  out  of  the  way  of  the  
operators.  This  leads  to  no  production  stop  while  stocking  the  material.  Plan  the  layout  so  all  
delivery  points  are  accessible.  There  should  be  no  dead-­‐end  aisles  and  the  aisle  design  should  
allow  180°  turns  between  two  aisles.  The  truck  roads  needs  to  be  planned  in  such  a  way  that  
the  drivers  easily  can  deliver  material  and  then  continue  driving  
 
Automated  replenishment  
If  cost  efficient,  automate  the  replenishment  but  be  aware  of  the  flexibility.  Automated  line  
feeding  should  only  be  used  for  modules  with:  low  unit  load,  high  frequency  of  internal  
transport,  long  internal  distance  and  voluminous  packaging.    
 
Route  planning,  group  balancing  and  flexible  routes  
Three  enablers  to  create  an  efficient  replenishment  set-­‐up:  

2
 • Route  planning:  Define  a  total  workload  considering  the  delivery  addresses  and  the  
time  parts  are  needed  at  line  side.  The  aim  is  to  decrease  the  total  travel  time  and  to  
define  the  most  optimal  delivery  route  for  the  total  workload.    
• Group  balancing:  A  group  of  operators  have  a  common  responsibility  to  perform  
replenishment  tasks  within  a  predefined  area  or  flows.  The  aim  is  to  reduce  balancing  
losses  (waiting  time).    
• Flexible  routes:  In  flexible  routes  the  number  of  deliveries  is  normally  the  same  but  the  
starts  and  ends  are  varying  every  replenishment  cycle.  All  routes  usually  start  at  the  
same  predefined  time  (e.g.  every  60  minutes).  The  last  route  is  the  only  route  that  has  
a  varying  working  load.  The  aim  is  to  sum  up  all  balancing  losses  in  the  last  route  and  
use  this  time  for  value  adding  activities.  All  other  routes  are  fully  balanced.    
 
An  illustration  of  a  set-­‐up  with  route  planning,  group  balancing  and  flexible  routes  are  shown  
below.  

BOX
STORAGE

RED
START
YELLOW
STOP
YELLOW
START
L BLUE L L L
I STOP I I I
N N N N
E E E E

RED
STOP

BLUE
START

 
The  routing  example  shows  how  the  blue  and  red  route  works  100%,  but  that  the  yellow  route  
delivers  the  remaining  orders  and  can  be  used  for  other  value  adding  activities.  
 
Replenishment  efficiency  
To  reach  an  efficient  replenishment  process  the  non-­‐value  added  work  must  be  kept  to  a  
minimum.  Examples  of  non-­‐value  added  work  are  driving,  reading  information,  handling,  
waiting  time,  etc.  Design  factors  to  get  lean  are;  short  driving  distance,  minimal  handling,  no  
waiting  time,  several  orders  are  grouped  together  in  one  route.  In  the  picture  below,  examples  
of  efficient  replenishment  time  in  different  flows  are  presented.  The  data  comes  from  
solutions  at  Ford,  Mazda  and  VCC.  
 
Replenishment method Minutes/unit

1. Pallets
4,0
2. Seq. Racks 2,0-4,0
3. Small boxes 1,0
4. Int. transports 2,0-4,5

3
  
3.1.2  Re-­‐packaging  
Vision  
• To  have  the  same  packaging  from  supplier  to  material  façade,  unless  it  is  cost  efficient  
to  re-­‐pack.  
• Minimal  handling  and  administration  work.    
• Locate  the  re-­‐packaging  at  an  optimal  place.  
• Optimal  space  utilisation.  
 
Strategy  
• Choose  the  most  cost  efficient  re-­‐packing  method  (downsizing,  kitting,  internal  
sequencing,  external  sequencing).  
• Place  the  kitting  and  internal  sequencing  area  as  close  as  possible  to  the  point  of  use.    
• Centralise  the  re-­‐packing  areas  and/or  organisation  (or  increase  work  content  for  
operators  if  not  line  balanced).  
 
Execution  
Re-­‐packaging  methods  
Different  re-­‐packing  method  could  be  used.  The  cost  matrix  for  different  packaging  and  
supplying  methods,  seen  below,  indicates  the  methods  that  normally  should  be  chosen  
concerning  logistic  cost,  but  of  course  the  total  cost  must  be  considered.  

   
For  further  description  of  the  re-­‐packaging  methods,  see  logistics  documented  descriptions  at  
BMS.    
 
Re-­‐packing  locations  
Kitting  and  sequencing  areas  should  be  located  as  close  to  the  point  of  use  as  possibly.  The  
reason  is  that  the  efficiency  increases  concerning:  
• Inventory  reduction    
• Lead-­‐time  reduction  for  replenishment  (order-­‐to-­‐delivery)    
• Manpower  needed  for  replenishment    
• Number  of  special  types  of  packaging  needed  in  flows.  
 
The  first  choice  should  always  be  to  locate  as  close  to  production  as  possible.  
1. In  material  façade  to  utilise  free  space  and  opportunity  to  cut  balancing  losses  for  
operators  and/or  decrease  workload  for  operators.    
2. If  not  possible  directly  in  material  façade,  look  for  free  areas  nearby.    
3. Install  specific  kitting  areas  or  outsource  this  operation.  The  decision  must  be  based  
upon  a  business  case.    

4
However,  always  consider  local  conditions  and  requirements,  such  as  fork-­‐lift-­‐free  
replenishment.  
 
Centralise  the  re-­‐packing  areas  and/or  organisation  (or  increase  work  content  for  operators  if  
not  line  balanced)  to  gain  efficiency.  The  reason  is  that  the  efficiency  increases  concerning:  
• operator  balance    
• needed  equipment    
• replenishment    
• production  operator  ergonomics    
• increasing  work  content    for  production  operator  .  
 
Re-­‐packing  efficiency
To  reach  an  efficient  re-­‐packing  process  the  non-­‐value  added  work  to  perform  the  picking  
must  be  kept  to  a  minimum.  Examples  of  non-­‐value  added  work  are  reading  picking  
information,  walking  time,  handling  of  packaging,  etc.  In  the  picture  below,  efficient  re-­‐packing  
times  with  different  re-­‐packing  methods  are  presented.  The  data  comes  from  solutions  at  
Ford,  Mazda  and  VCC.  To  reduce  the  time  needed  to  transfer  picking  information  a  pick-­‐to-­‐
light  system  is  preferable.

   
 

3.1.3  Material  façade  

Vision  
Strive  towards  decreasing  none  value-­‐added  work  performed  by  the  operators  and  obtain  a  
maximum  80%  filled  material  façade.    
• Maximum  80%  filling  degree  in  the  material  façade.    
• One  pick  place  and  no  handling  of  packaging  by  the  operator.  
• Line  side  is  only  utilised  for  materials  and  equipment  needed  for  production.  
 
Strategy  
• MP&L  together  with  ME  &  production  will  choose  the  most  cost  efficient  packaging  
method  to  support  the  maximum  80%  filling  degree.    
• Decrease  non-­‐value  added  work  performed  by  the  line  operator  with  the  packaging  
and  group  parts  to  create  one  picking  places.    
• Standardised  height  of  the  assembly  lines.    
• All  points  should  be  accessible  for  material  handling  with  equipment  needed  for  
replenishment.    
• Line  equipment  shall  easily  be  movable.  
• Materials  and  equipment  needed  for  direct  production  have  priority  1  in  the  material  
façade.  
• Initially  aim  to  utilise  smallest  boxes  that  holds  2  hours  of  production,  which  in  practice  
could  be  decreased  depending  on  logistic  and  material  façade  set-­‐up.  
 

5
Execution  

 
Filling  degree  of  material  façade  
The  total  goal  for  the  material  facade  set-­‐up  is  an  80%  filling  degree.  This  is  just  a  mind-­‐set  and  
for  specific  workstations  it  could  vary  from  0  to  100%  due  to  production  set-­‐up  and  cost  
aspects.  The  general  aims  are  to:  
• Facilitate  a  flexible  set-­‐up  for  quick  changes  of  materials  between  stations.  
• Be  able  to  bring  in  new  projects/products  and  meanwhile  increase  the  filling  degree  
above  80%  but  aiming  to  continuously  work  to  go  below  80%  again.  
 
Accessibility  of  material  
It  is  also  important  to  design  the  material  façade  with  one  pick  place.  This  means  that  parts  are  
grouped  in  the  material  façade  to  decrease  walking  and  picking  time.  Parts  could  be  grouped  
by  variant  or  in  another  efficient  way.  The  aim  is  to  decrease  the  non-­‐value  added  work  done  
by  the  production  operator.  
• The  operator  has  to  easily  be  able  to  choose  and  pick  the  right  parts.    
• The  information  given  to  the  operator  should  be  done  in  a  way  so  that  picking  errors  
are  avoided.    
• The  operator  should  easily  reach  the  parts  (short  distance).  
• The  material  facade  should  support  minimal  walking  distance  for  the  operator.    
• Decrease  the  non-­‐value  added  work  by  the  operator.  
 
Control  principle  
The  material  flow  of  the  company  should  be  customer  order  driven  to  as  high  extent  as  
possible.  This  means  that  production  should  start  when  a  customer  has  placed  an  order  and  no  
products  should  be  produced  for  storage.  Focus  on  total  efficiency  and  make  only  what  is  
demanded  from  the  next  operation.   Material handling system
facilitating First-in-first-out
 
One  way  to  reach  and  support  this  control  principle  is  to  design  
material  handling  equipment  in  smart  ways.  The  picture  to  the  
right  shows  a  material  handling  design  that  clearly  shows  when  a  
part  has  been  removed  and  indicates  the  delivery  need  of  a  new  
part.  If  all  the  parts  had  been  randomly  mixed  in  the  box,  it  
would  be  much  harder  to  keep  track  on  the  delivery  need.  This  
design  also  supports  the  first-­‐in-­‐first-­‐out  approach,  which  is  
favourable  since  it  ensures  that  the  oldest  part  is  being  
processed  first  and  it  also  supports  pull  scheduling.  
  Material delivery

6
Buffers  &  Work  in  Progress  
Strive  towards  a  design  of  the  production  
system  that  facilitates  for  a  production  with  a  

Stock

Stock
batch  size  of  one  part.  This  will  reduce  the  
Work  In  Process  (WIP),  increase  cash  flow  and  
make  defect  detection  easier.    
 
Also,  strive  towards  designing  the  system  so  

Stock

Stock
that  operations  run  with  no  more  than  one  
product  between  operations  in  order  to  
reduce  WIP  and  ease  the  process  of  tracking  
defects  back  through  the  process.  
 
Both  of  these  points  strongly  affect  the   Work-in process
material  façade  and  the  need  for  space  next  to   Waiting to be
the  production  line.   Stock processed
 

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Appendix  B  –  Interview  guide  
1. Facesheet
Name:
Age:
Gender:
Years at VCC:
Work title:

2. Introduction questions
What is the main responsibility of your department?
With a short description, what is your work assignment? What specifically is it that you
do?

3. Placing the aspects

Take a look at the different aspects and place them under a suitable heading. Start with
the aspects that you think is most important from your point of view.

Why did you place the aspect under the specific heading?
Can you please describe what should be included under the aspect?
Can you please motivate if and why the aspect is relevant when developing a production
system?

4. Additional aspects
Can you think of any additional aspects, not covered by the already existing ones?
Please try to come up with five new aspects.

How would you motivate the aspect and its placing?

Can you please describe what should be included under the aspect?
Can you see any connection to an already existing aspect? If yes, how do they correlate?

5. Implementation
Can you think of any helpful but rarely used document at your department?
-­‐ If yes, why do you think this is the case and what factors could be changed in
order to increase the usage of the document?
-­‐ If no, what do you think is the reason that the documents are successfully used?

If you were the creating guidelines, how would you deliver them in order to secure the
successful usage of them?

If you were the one receiving the guidelines concerning your day-to-day activities, what
factors do you think would affect your usage of the guidelines?

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Appendix  C  –  Interview  description  
The   purpose   of   this   research   is   to   find   general   guidelines   that   can   help   the   work   process   for  
developers,   making   their   projects   to   develop   production   systems   easier   and   also   to  
standardise  and  simplify  the  projects.  The  study  is  interested  in  a  high  level  perspective,  with  a  
focus  on  the  possibility  to  generalise  the  work  process.  
 
This   is   an   interactive   interview.   After   the   initial   questions   concerning   standard   personal  
information,   the   interviewee   is   asked   to   place   several   post-­‐its   under   six   different   headings.   On  
each   post-­‐it   there   is   an   important   aspect   to   consider   when   developing   a   production   system.  
Examples   of   what   the   aspects   consists   of   are   level   of   automation,   operation   sequence,  
investment   policy,   safety   etc.   The   aspects   should   be   placed   under   the   headline   it   has   the  
closest   connection   to   from   a   production   development   point   of   view.   The   headings   and   their  
meanings  are  described  below.  
   
• Production  system:  Contains  the  aspects  that  concern  the  stations  and  the  process  of  
production.  
• Product  characteristics:  Includes  the  product  oriented  aspects.  
• Logistics:  This  heading  contains  aspects  concerning  the  traffic  of  material.  
• Financing:   Includes   the   aspects   that   involve   the   financial   aspects   of   the   production  
development.  
• Work   organisation   and   personnel:   Treats   the   relationship   between   the   organisation  
and  the  personnel.  
• Work  environment:  Embraces  the  relationship  between  the  workers  and  their  stations.  
 
When   the   interviewee   places   each   of   the   aspects,   they   are   asked   to   explain   their   choice,  
describe   what   they   think   is   included   under   the   aspect   and   to   motivate   if   and   why   the   aspect   is  
relevant  when  developing  a  production  system.  
 
When   the   discussion   about   the   aspects   is   finished,   the   interviewee   is   asked   to   come   up   with   5  
new   aspects,   not   covered   by   the   already   existing   aspects.   They   are   also   placed   by   the  
interviewee   under   a   suitable   headline.   Once   again,   the   interviewee   is   asked   to   motivate   the  
choices.  
 
At   the   end   of   the   interview,   there   are   a   few   questions   about   the   implementation   of   guidelines  
and  standardised  processes.    
 
The   picture   below   clarifies   the   process   of   how   the   post-­‐its   should   be   placed   under   the  
headings.  
 
 
 

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Appendix  D  –  System  Aspects  checklist  by  Bellgran  &  Säfsten  (2012)  
Production engineering Offer inquiry
Staff turnover
Production layout Absence cost
Level of automation (dynamic) Profitability demands
Flexibility Life-cycle cost, Life-cycle profit
Production volume
Product Life-Cycle
Number of product variants Work organisation and personnel
Cycle time, lead time, change-over time
Availability, reliability Type of work organisation, team work
Separation of production processes Available personnel, personnel structure
Disturbances Education, training
Modularisation Competence, personnel flexibility
Operation sequences Information
Tolerances Attitudes, creativity, adaptability for changes
Production process demands
Reliability – equipment Work environment
Spare parts
Tool supply Physical environment
Follow-up system Man-machine, ergonomics
Safety
Material handling Noise, vibrations, light
Chemical health risks
Control principle: push/pull Psycho-social work environment
Work in progress, buffers Stress level related to work tasks
MRP-system Cleaning routines
Information system Work studies
Handling equipment, handling volumes
Material and product flows
Queuing time
Market – Strategic level
Transport, transport time New markets, market demands
Inventory capacity, routines Competitors, Customers
Quality control Price level, stability, prognoses

Plant and equipment Company – Strategic level

Plant characteristics: floor, ceiling, pillars, truck Company strategy, future plans
roads etc. Investment policy
Layout planning Resources, competences
Equipment Core activities
Stores Make or buy strategy
Media
Capacity
Product concept
Personal premises
Price
Financing Quality, Design
Product mix, product complexity
Investment level Delivery time, delivery precision
Method of calculation Customer adaptation
Pay-off time for machines/equipment

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Appendix  E  –  Interviewees’  placements  of  aspects  

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