Effects of a production improvement programme on global quality performance : The case of the Volvo Production System

Purpose – How can multinational companies become more productive on a global scale? The purpose of this paper is to investigate whether a production improvement programme can improve quality performance in a global network of factories. Specifically, the paper analyses the effects of the Volvo Group's production improvement programme on global quality performance. Design/methodology/approach – The research approach is a case study of the Volvo Production System (VPS). The paper analyses the effects of the programme on global quality performance, using data from an implementation audit and a questionnaire survey. The paper triangulate the analysis with longitudinal quality performance data from three different plants. Findings – The paper finds a significant and strong positive relationship between implementation of the VPS and improvements in both process quality and product quality. Hence, the paper suggests that tailored production improvement programmes have clear positive effects on global quality performance. Research limitations/implications – As with all case studies, the paper should use caution when generalising beyond the specific case. However, the Volvo Group is a broad and diversified corporation, which mitigates this limitation. Originality/value – While many studies have investigated the effect of production improvement programmes on performance, very few have looked at the effect of a corporate multi-plant programme. This study represents one of the first attempts to do so. The paper also provides a case description of the VPS that readers might find valuable in its own right.