Developing the Combine Harvester Plant: Svenska Rosenlew Ab
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"The case presented here represents a radical restructuring within one industry.
Volvo had decided to concentrate on construction equipment within heavy machinery and give up other industrial machinery. Electrolux (Aktiv) was interested in exchanging its combine harvester factory in Sweden for Rosenlew's household appliances factory in Pori, Finland. Massey-Ferguson had decided to give up the manufacture of combine harvesters to solve a profitability crisis.
Rosenlew had made the decision to become a leading manufacturer of small and medium size harvesters and acquired Electrolux owned combine harvester business in Sweden, Aktiv Fisher.
The target was to develop the Swedish unit, Svenska Rosenlew Ltd, to a level of equality with the Finnish unit. Due to the remarkably high labour costs the efficiency targets were to be set much higher than in the Finnish unit. The development time set as a target was 2 to 3 years, starting from the acquisition.
""We learned the JIT production principles and production control systems from the Japanese. We went to Finland and learned about quality and work measurement systems at the Finnish combine harvester factory.
We changed our pay system radically on the basis of five model companies we had visited. We learned from an airline company how to give everyone more responsibilities and authorities, and involved everyone in the comprehensive change process."""
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