Lean Systems at Autoliv
Length:
13:37
Subject:
Design and Implementation of a Lean System
Textbook Reference:
Chapter 6: Lean Systems, page 241
Summary
Autoliv is a Fortune 500 company that produces automotive safety devices. It has over 80 plants
in more than 32 countries and had revenues of $6.7 billion in 2007. Autoliv is a world-class
example of lean manufacturing. This video takes the student on a tour of the Ogden, Utah
production facility on a typical work day and shows how Autoliv implemented lean manufacturing
methods.
Essay or Discussion Questions Based on the Video
1. Why is a visual management approach such an integral part of Autoliv’s lean system?
• To help focus worker efforts daily, Autoliv has a blue “communication wall” that
everyone sees at the start of the day as they head to their work site. The wall contains
the company’s “policy deployment” which consists of company-wide goals for
customer satisfaction, shareholder/financial performance, and safety & quality. The
policy deployment begins with the company-wide goals, which then flow down to the
plant level through the plant manager’s goals, strategies and actions for the facility.
These linked activities assure that Autoliv achieves its goals. By communicating this
information – and more – in a visual manner, the central pillar of the APS House is
supported. Other visual communication and management methods are in place as well.
2. Describe the JIT considerations presented in the chapter as they relate to Autoliv’s
manufacturing environment.
• The House of Toyota (Fig. 6.3) has three main pillars: JIT, Culture of Continuous
Improvement, and Jidoka. Firms can use those principles to achieve a lean system.
Autoliv, for example, adapted the Toyota House to something that works a little better
3. Which method of work flow is embodied in Autoliv’s system? Why is this approach most
suitable to its lean environment?
• Autoliv uses two types of cards in controlling its manufacturing. The heijunka card
contains the production plan for a cell, with information such as part number and
quantity. This approach allows management to use mixed-model production sequences
and balance the load across cells. The Kanban card is used for component and material
• Autoliv has designed the work cells for flexibility. Management has provided sufficient
equipment, tools, and space so that the number of employees can be increased as
needed to combat overloads. The other requirement is that the employees are cross
trained so that they can be shifted from one cell to another.
• When an overload at a cell is identified, management and the cell employees need to
answer the following questions: What must we do to catch up on production? Why did
it happen? and How can we prevent this from happening in the future?
4. When Autoliv started its lean journey, a number of operational benefits and implementation
issues had to be addressed. What were they, and how were they addressed?
• The changing environment made it difficult at first for suppliers to meet Autoliv’s
constantly changing and unstable processes. Lean system methods made problems
visible and forced the company to address and resolve the problems instead of finding
ways to work around them as had been done in the past. Daily audits, monthly training,
and more in-depth education programs were created to help focus attention to those
areas where changes needed to be made. Workers and management were organized into
