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Autoliv Spring Dynamics Limited is part of Autoliv, and is one of the companies responsible for supplying Autoliv with seat belt retractor springs which are used in cars to retract the webbing on seat belts. Autoliv is a worldwide leader in automotive safety, a pioneer in both seat belts and airbags, and a technology leader with the widest product offering for automotive safety.
Autoliv Spring Dynamics produces millions of springs every year by using the just-in-time production system. Wayne Morris, the company’s operations manager, discusses the benefits of the system: “What we have gained from just-in-time is a return to profitability. We used to carry massive amounts of stock here in the UK so bringing in just-in-time has reduced our lead times and our stock holding which has freed up cash for us. It has also enabled us, with our existing equipment and a 24 hours and seven day working pattern, to increase our volumes. In 2000 we were making about 18 million springs, and now we have increased production to about 45 million springs by introducing just-in-time methods of manufacture, lean processes, and also working with our suppliers, getting them to come on board with the way we work and supplying daily to us if necessary.
“We’ve also got less people doing much more varied operations now. Our employees have a better understanding of the business and the way it works, and this has helped us maintain a very low staff turnover rate, which is something we did suffer with very heavily a couple of years ago. We were turning over a lot of staff and people weren’t gaining job satisfaction so employee empowerment has been very good for us.”
Wayne continues: “The key to our growth has been through our workforce. We’ve now got a core team of employees who understand the whole needs of the business and the needs of the customer. That means we have continuity of communications and interaction with customers and we work with the same people on a daily basis which has worked very well for us. As well as constant improvements in our customer service, keeping our workforce trained and motivated has gained customer confidence.”
In recent years the company has expanded it’s retractor rewind operations into other countries. It now has established facilities and operates in Mexico, Thailand, Turkey and Hungary. This expansion was important because of the customer. Wayne explains: “Autoliv’s customers insist on just-in-time delivery with low logistics costs and the only way to achieve that is to put your supplier base as close to where you want to make the cars as possible. Autoliv usually places itself within a small kilometre radius from the customer’s requirements and when we have to supply our sub-components we are forced in turn to locate ourselves close to the Autoliv company, which is in close proximity to the OEM. It’s all about keeping the logistics chain as short as possible, and also keeping lead times as short as possible to make sure rapid reactions and change in requirements in car builds can be accommodated. There’s a market share in the world for about 180 million seat belt products, we’ve got about 45 million of that so we’re not the biggest player in the market, but we’re well on our way to achieving that if we carry on with this policy as it is good for the customer.”
Further Expansion
There is growth in the automotive industry on a regular basis, creating opportunities for natural growth for Autoliv Springs Dynamics as well as expansion generated from the company relocating itself. Wayne comments: “Our plans for the future are further expansion. We’re looking to expand further into some Eastern European countries, but we have always planned to keep our core production in the UK. Also our key skills are in our workforce - our commercial management, logistical control and research development function is all UK based, although we do tend to have to travel a lot because of this.
“The benefit of the expansion is that we can then secure further growth in volume, as in our high volume low margin business the more volume we get the more profitable we become. We’re hoping to put another 30 per cent capacity in this year alone followed by hopefully another 30 to 40 per cent the following year. We’ve had a very aggressive 30 per cent growth curve for the last two or three years and we’re aiming for the same for at least the next two years.”
Wayne concludes: “What sets us apart is our willingness to change. We are very willing to absorb new ideas and keep on changing and realise that continual change and continual improvement is the only way to go forward. As soon as you decide to stand still is the day that you will actually stop making progress in growth, volume and business. We have made big improvements because our workforce are willing to take on new ideas and we’ve made big gains in our overall outputs and our productivity because people are keen and switched on. The strength of the workforce is in their ability to flex and think in different ways rather than get set in old-fashioned outmoded ideas.” VTR
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