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PREREQUISITES FOR PRODUCTIVITY IMPROVEMENT -A CLASSIFICATION MODEL DEVELOPED FOR THE VOLVO CAR CORPORATION

Gummesson, Fredrik and Herlin, Joakim (2004) MIO920
Production Management
Abstract
The Volvo Car Corporation experience diversities in the price development of
the four different business areas electronics, interior, exterior and chassis and
power train. The purpose of this master thesis was to investigate if there are
any structural differences that give the suppliers different prerequisites for productivity
development thus different prerequisites for price reductions.
When conducting interviews with commodity buyers at VCC, two factors that
influence the suppliers’ potential for productivity development and price reductions
were identified:
1. The technological maturity of the suppliers.
2. The amount of Value Added of the suppliers’ products.
By combining these two factors, a two dimensional supplier... (More)
The Volvo Car Corporation experience diversities in the price development of
the four different business areas electronics, interior, exterior and chassis and
power train. The purpose of this master thesis was to investigate if there are
any structural differences that give the suppliers different prerequisites for productivity
development thus different prerequisites for price reductions.
When conducting interviews with commodity buyers at VCC, two factors that
influence the suppliers’ potential for productivity development and price reductions
were identified:
1. The technological maturity of the suppliers.
2. The amount of Value Added of the suppliers’ products.
By combining these two factors, a two dimensional supplier classification
model can be developed, where suppliers are classified according to their productivity
development potential. This should be a better way to categorize the
suppliers when comparing price developments
The factor technological maturity has a connection to the amount of Value
Added and with further investigation the model might be reduced to one dimension.
According to several investigations made there is a strong connection between
R&D intensity and productivity development, where companies with high
R&D intensity show better productivity developments than companies with a
low R&D intensity. Companies with higher R&D intensity have a lower technological
maturity. OECD has used the R&D intensity measure to classify
companies into four different groups depending on their R&D intensity. By
using this classification the dimension of technological maturity can be quantified
and a classification can be made according to the suppliers’ prerequisites
for productivity development. (Less)
Please use this url to cite or link to this publication:
author
Gummesson, Fredrik and Herlin, Joakim
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
04/5213
language
English
id
2007132
date added to LUP
2011-06-30 11:39:03
date last changed
2011-06-30 11:39:03
@misc{2007132,
  abstract     = {The Volvo Car Corporation experience diversities in the price development of
the four different business areas electronics, interior, exterior and chassis and
power train. The purpose of this master thesis was to investigate if there are
any structural differences that give the suppliers different prerequisites for productivity
development thus different prerequisites for price reductions.
When conducting interviews with commodity buyers at VCC, two factors that
influence the suppliers’ potential for productivity development and price reductions
were identified:
1. The technological maturity of the suppliers.
2. The amount of Value Added of the suppliers’ products.
By combining these two factors, a two dimensional supplier classification
model can be developed, where suppliers are classified according to their productivity
development potential. This should be a better way to categorize the
suppliers when comparing price developments
The factor technological maturity has a connection to the amount of Value
Added and with further investigation the model might be reduced to one dimension.
According to several investigations made there is a strong connection between
R&D intensity and productivity development, where companies with high
R&D intensity show better productivity developments than companies with a
low R&D intensity. Companies with higher R&D intensity have a lower technological
maturity. OECD has used the R&D intensity measure to classify
companies into four different groups depending on their R&D intensity. By
using this classification the dimension of technological maturity can be quantified
and a classification can be made according to the suppliers’ prerequisites
for productivity development.},
  author       = {Gummesson, Fredrik and Herlin, Joakim},
  language     = {eng},
  note         = {Student Paper},
  title        = {PREREQUISITES FOR PRODUCTIVITY IMPROVEMENT -A CLASSIFICATION MODEL DEVELOPED FOR THE VOLVO CAR CORPORATION},
  year         = {2004},
}