Quality throughout the Vestas Value chain
“Two decisions have helped ensure that Vestas remains the world’s leading wind turbine manufacturer; the regionalization of the production and the dedication to quality, research and technology development. The elimination race after the credit crisis has increased the value of local presence and quality of products and services. This is to Vestas benefit”.
- Bent Erik Carlsen, Chairman of the Board of Directors in Vestas
Quality is a number one priority in Vestas. Overall our total level of quality is improving, but we need to continuously work to improve the quality performance of our design processes, production, and service throughout the entire value chain in order to deliver our product on time and in the expected quality. That is what our customers can rightly expect from us - and that is why we say that “FAILURE IS NOT AN OPTION”. To stay ahead we need to demand quality from our self and our suppliers.
In order to solve this preliminary case, give your solution to one of the areas in Point 1. Point 2 is mandatory to include no matter your choice of area in Point 1. Point 1 should account for 85% of your proposed solution and Point 2 for 15%.
1.1. Product Development
It’s vital to embed quality control concepts and behaviours into the product development cycle to ensure measureable and quantifiable product improvement. Tools like Design of Experiments (DOE), Failure Modes and Effects Analysis (FMEA) are used together with Tolerance Chain Analysis to ensure predictive modeling of the performance of our designs.
How can Vestas use and enhance quality control concepts and processes within Product Development to achieve consistent results that are capable of satisfying and exceeding our ever-increasing customer expectations?
1.2. Quality in Production
The product development process has been improved to ensure integrated product development in liaison with customer, sales and production units as well as suppliers. Vestas works closely with its suppliers to improve the professional level of the supply chain, enabling the supply of components at competitive prices that reflect the quality and timeliness of the delivery.
Against this background, Vestas launched Six Sigma as the Group’s key quality improvement tool in 2005. At the end of 2010, Vestas and the vast majority of its suppliers had reached 5 Sigma, against 4 Sigma in 2008, which is one of the prerequisites for the long-term improvement of profitability.
Come up with a strategic plan for what Vestas can do to take this to the next level and deliver premium production quality – also tomorrow?
1.3. Supply Chain Management
Managing product development, sourcing, production and on-site delivery has developed into a very complex supply chain in Vestas, which can be a challenge considering the existing market demands. Today the market of wind power plants is a highly competitive global market characterized by large scale utilities demanding wind site customized solutions, regional presence, lower cost of energy and shorter project lead times.
Consider the challenges Vestas faces in the global market of renewable energy; which supply chain strategy and tools would you propose be implemented to increase quality in our supply chain – from product development to the scope of delivering the product to the customer in time and at the expected high quality?
2. Sustainability
For all 3 areas give your solution to which measures could be put in place in order to make the
- Product development
- Production
- or Supply Chain
in Vestas as sustainable in the future as possible.
