Sunwind A.B. – A Case Study

Introduction
On November 14, 2000 Olav Larsson, Managing Director of Sunwind, eased back in his seat as his A380 climbed away from Tokyo’s Narita Airport to begin the 17 hour flight to Gothenburg, Sweden. He was returning from a 10-day trip to Japan where he had visited factories of Nissan and Mazda as well as a number of their parts suppliers. This visit had reinforced his conviction that Sunwind should initiate a proposal to Volvo, its major customer, that Just-In-Time delivery of floor lids1 be made directly onto its 700 series automobile assembly lines at Torslanda, near Gothenburg, Kalmer, a port city on Sweden’s east cost, and at Ghent in Belgium.

Lars, a graduate engineer, had previous managerial …show more content…

This manufacturer was a potential competitor with the capability to supply 700 series floor lids to the Ghent plant where the 700 series 5-door model was being produced. Indeed, Sunwind was finding it difficult to meet the increased demand from Ghent for the 700 series floor lids.
The Product
Lars felt that the floor lid for Volvo’s 700 series 5-door station wagon would be appropriate for demonstrating Sunwind’s capability to be Volvo’s first Swedish Just-In-Time supplier. In 2000, the product had accounted for 17% of Sunwind’s sales revenue. Forecasts for 2001 indicated that this figure could rise to 25%. Also Volvo was likely to be interested in such a proposal, since floor lids were bulky, easily soiled and offered in several carpet/colour combinations (see Figures 3 and 4).

The floor lid fits into the compartment behind the rear passenger seat, providing a rigid plat surface for carrying loads, as well as covering the storage compartments for a foldaway rear-facing children’s seat and a spare tire. The lid is comprised of four separate units. The front unit is composed of two sections hinged in the centre. The uppermost section is split in two and can be opened when the back of either rear passenger seat is folded forward, which also increases the load carrying area. The rear unit is also hinged to gain access to the storage compartments. Two