THe ROAD AHeAD - Volvo Spirit Magazine

Issue 1/2013VOLVO CONSTRUCTION EQUIPMENT MAGAZINETHE ROAD AHEADWith a world class reputationRoad Machinery and Volvo CE: A match made in heaven.Inside Track: Pat Olney two years on as Volvo CE president.Spotlight: Dealers are a big deal for Volvo.Plus: The new generation of Volvo road machines and much more...

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Volvo Construction Equipment MagazineISSUE 01/2013contents5 Inside TrackPat Olney reflects on the challenges ofmanaging in unpredictable times and theimportance of staying close to the customer.13 Australia gets Wise about CarbonWestern Australia’s compost specialistis promoting healthy plant growth.17 Spotlight – Dealers are a big dealEberhard Wedekind explains why Volvo CE’sglobal network of dealers is a big deal.21 A glimpse into the futureOver the next three years Volvo CE will launch arecord number of state-of-the-art road machines…we take a sneak preview!Join us on:Volvo Spirit Magazine App is nowavailable from the Apple itunes store.The trouble with definitions.Such is the apparent speed of change in modern society that our understandingof everyday terms is constantly being challenged. It is, of course, in human beings’nature to come up with new solutions to old problems – or in some cases, newsolutions to problems we didn’t even know we had. This issue of Spirit is litteredwith examples of common phrases whose meaning is being redefined in today’sflurry of technological and social change:Evolution vs. Revolution. In the old days evolution meant slow and revolutionmeant fast. But when things start evolving rapidly, the difference between thetwo terms becomes paper thin.Innovation. This used to mean cleverer, more complex and inevitably moreexpensive. But why can’t innovation also mean smaller, simpler, lighter andless expensive?Reputation. Didn’t companies used to tell their customers what they should thinkabout them? Well, not any more. It is the ‘voice of the customer’ that drives a firm’sstanding and status in an industry. Smart companies listen to that voice, becausecustomer perception is market reality.Fit for purpose. Where once it was thought that we would see ‘global’ productsthat were the same everywhere, now we understand that local needs differ. Onesize does not fit all – welcome to the world of mass customization.Unpredictability in markets. This used to happen rarely. Now it’s the new normal.Shared vision. There was a time when the objectives of manufacturers, theirdealers and customers clashed. Now there is a greater understanding of ourmutual dependency. Success for all is possible by greater understanding ofeach other’s long term hopes and by aligning ouractions accordingly.Of course change has always been with us, but now doesseem to be a time of momentous change for our industry.This is only a threat to those unready or unwilling to adapt.At Volvo we embrace change and hope to drive the industryand our customers to a brighter future. There is no doubtthat it’s exciting – even if the definitions do keep changing.Klas MagnussonPUBLISHED BY Volvo Construction Equipment (46th edition)PUBLISHER Klas Magnusson EDITOR IN CHIEF Steven LefebvreEDITORIAL PRODUCTION AND DESIGN EMG Communications LtdCONTRIBUTORS Niall Edworthy, Tony Lawrence, Dan Waddell, Holly Brace, Diana Henry, Brian O’SullivanPHOTOGRAPHY Julian Cornish TrestrailPlease send your editorial correspondence to Volvo Spirit, Volvo Construction Equipment,Hunderenveld 10 – 1082 Brussels, Belgium or by e-mail to volvo.spirit@volvo.com.All rights reserved. No part of this publication (text, data or graphic) may be reproduced, stored in adata retrieval system or transmitted, in any form whatsoever or by any means, without obtaining Volvo CE’sprior written consent. Volvo Construction Equipment does not necessarily endorse the views or factualaccuracy of the articles in this issue. Four issues per year – printed on environmentally friendly paper.www.volvoce.com/global

TOTAL SOLUTIONSDEALER NETWORKCUSTOMER SERVICEVolvo ConstructionEquipment productsand services areonly a click awayRELIABILITYTo find your local dealer go towww.volvoce.comwww.volvoce.com

INSIDE TRACKPAT OLNEYTwo years on as president of Volvo Construction Equipment.SPIRIT5

“meeting customers at their place of work challenges my preconceived ideas of whothey are and what they need from us to be more successful.”Much has changed during Pat’s two-year tenure at the top.After two years at the helm of VolvoConstruction Equipment, president PatOlney reflects on the challenges of managing inunpredictable times – and the importance of stayingas close to the customer as possible.The voice of the customerhas never been more important thanit is today, with economic headwindsmaking it harder for customers toremain competitive, profitable andprosperous. “I’ve learned on my travelsthat Volvo CE machines are respectedfor their quality and fuel efficiency,”says Olney. “But we can’t takecustomers’ support for granted, so weneed to keep improving in our bid tobecome their closest business partner.”No one could accusePat Olney of secluding himself away in in his office. In fact, if his travel schedulein recent weeks is anything to go by, the employees at Volvo CE’s headquarters inBrussels, Belgium, might start to wonder exactly who it is that occupies that bigoffice in the corner. A whirlwind route has seen him take in such countries as China,Brazil, the US, Ghana, Nigeria and the Democratic Republic of Congo. This flurryof activity has occurred because of Olney’s philosophy of getting ever closer to thecompany’s customers.“We shouldn’t forget that our customers are the bosses,” says the easygoingand affable 43-year-old Canadian, who became the youngest-ever president of thecompany in early 2011. “I need to meet with these important people a fair proportionSPIRIT6

Pat Olney could not be accused of secluding himself away in his office.“We shouldn’t forget that our customersare the bosses.”of my time. This isn’t just a public relations exercise; meetingcustomers at their place of work challenges my preconceivedideas of who they are and what they need from us to be moresuccessful. This greater insight can also be uplifting – such asseeing mining customers in Africa build and run better hospitalsand schools in the communities where they operate.”Innovation shiftFor a company that prides itself on developingadvanced concepts – such as the invention of the articulatedhauler in the mid-1960s – there is also a revolution underwayregarding Volvo CE’s definition of innovation. “Innovation shouldbe driven by customer needs – not just the latest clever feature,”says Olney. “While we absolutely need researchers working onfuture technology, great innovation doesn’t always have to bemore complex or costly – sometimes it can be smaller, cheaper,lighter, simpler or more efficient. That’s innovation too. The keydriver should be: ‘Does this new idea help the customer makemore money’?”This simple, clever, fit-for-purpose brand of innovationwill be increasingly seen as the company rolls out its new rangeof products designed for the needs of customers in emergingmarkets – economies that are expected to grow significantly inthe coming decade. The recently launched L105 wheel loader andEC80 eight-tonne excavator are good examples of this philosophy,these particular Volvo quality machines being tailored to theneeds of customers in China. On the advanced engineering front,Volvo CE’s soon-to-be-announced solution to the Tier 4 Final/Stage IV engine emissions legislation will see a large proportionof its already young fleet of machines updated yet again. “Thepace of change is fast and our customers should know that Volvois going to meet the specific needs of customers wherever theyare, building our strength and relevance in the industry with newproducts and services,” Olney states.Work in progressMuch has changed during Olney’s two-year tenureat the top of Volvo CE. The final important pieces of a companyreorganization have been put in place; products are increasinglybeing manufactured closer to the customer; and a successfulSPIRIT7

three-year strategy has met the majority of its objectives, resultingin significant progress in all areas. On the business performancefront, a best-ever quarter for profitability was soon followed bya slowdown in global demand and the need to adapt quickly tothe unpredictability of the ‘new normal’. “We hit the brakes earlyand reacted fast to the cooling markets,” says Olney. “It was theright thing to do for the health of the company – but reducingproduction and letting go of good people is always difficult.“We’ve come a long way, but we still have more todo,” Olney admits. “There is a great deal of uncertainty as tohow markets will develop in the short term – but longer term,the outlook for the industry remains extremely bright. We areno longer just a Swedish company but rather a global company,one that is able to take advantage of opportunities wherever theypresent themselves. The skill now will be to find the right balanceof profitability and sustainability. Of course, we want to besuccessful today – but not at the expense of achieving ourlonger term goals.”Pat Olney is a man who sees opportunities everywhere.His belief in the company’s future is clear from Volvo CE’s newthree-year strategy, whose cornerstones are growth, efficiency andleadership. This cannot be characterized as ‘Olney’s Grand Plan’;he is too much of a team player for that. It is, rather, a collectivestrategy to equip Volvo CE with the tools and skills to capturefuture opportunities in a market that is destined to expandsignificantly over the medium term. While growth and efficiencyhave both been in focus before, the concept of good leadership hasnever been such a high priority.Fit for the futureTwo years into the role, Olney admits to experiencinghis own leadership challenge as he adjusts to life in the president’soffice. “Like anyone moving up in their careers, letting go of thethings you are good at, that made you successful in the past, isn’teasy,” he says. “My job now is not to get bogged down in details,but rather to set the direction for the future and ensurewe have the structure and people to realize our ambitions.“My job now is to set the direction for thefuture and ensure we have the structureand people to realize our ambitions.”kept up with my fitness routine,” he says. “Feeling healthycontributes to a positive state of mind. This can be an exhaustingjob at times, but I remain just as positive, passionate andinvigorated about Volvo’s prospects as I have ever been.”Text: Brian O’Sullivan“I also understand that I have to be a role model forthe whole company,” Olney continues. “Whereas in the past Icould be more anonymous, now people look to me for guidance,and my words carry more weight than they did in the past. So Ihave to be careful what I say!”Olney needn’t worry about losing his identity, though,as a settled home life and three energetic daughters are good foradding a dose of normality. While piano playing may have takena backseat in recent months, Olney still makes time for his familyand his interest in film, books and especially music. “I have alsoSPIRIT8

WHY VOLVO ANDROAD MACHINERYARE A MATCH MADEIN HEAVENWhen Volvo Construction Equipment extendedits commitment to road machinery by buyingpart of Ingersoll Rand in 2007, it made perfectbusiness sense. And it’s a decision that makesjust as much sense today.SPIRIT9

When Volvo Construction Equipment extended itscommitment to road machinery by buying part of Ingersoll Randin 2007, it made perfect business sense. And it’s a decision thatmakes just as much sense today.“It was a great strategic fit back then, and it’s a greatstrategic fit now,” says the company’s Global Road Programmanager Sam Wyant.“Projections for global infrastructure spend over thenext 20 years are staggering, amounting to around US$30 trillion.Around 20% of that total will be reserved for road construction.“Roads come right at the start of infrastructure projects.You need roads to go places. The reasoning that led us to getmore involved in the segment is certainly as strong today as itwas five years ago. The opportunities, particularly in the emergingeconomies, are enormous.”The acquisition of Ingersoll Rand’s road division forUS$1.3 billion five years ago catapulted Volvo ConstructionEquipment (Volvo CE) into the segment’s big league.OFFERING THE WHOLE PACKAGEWhile there are many important companies in theroad-building business, few can boast product portfolios that coverall aspects of the industry. You can count them on the fingersof one hand (in fact, you can probably count them on just twofingers of one hand – with Volvo CE being one of them!).The company made its first major foray into roads withthe acquisition of Canadian based Champion Motor Graders –a company with a heritage stretching back more than a century –in 1997. Wyant was himself vice president for Volvo CE’s motorgraders in North America 10 years later when Ingersoll Randwas purchased.“Buying Ingersoll Rand gave us a world-class andcomprehensive range of products with a great history behindthem. We can now offer everything, from a skid steer to anexcavator, a truck, a paver, a milling machine, a wheel loaderor articulated hauler – pretty much everything, indeed, that isused in the building of new roads and in the refurbishment andmaintenance of existing ones. We’re in an excellent position toprovide whatever our customers need.“The 2007 deal also brought us some very importantsub-brands, such as Blaw-Knox in the United States and ABGin Europe. Road construction is a very tight-knit segment thatis grounded in its history, so these traditional brands, eachspecializing in different paving technologies, carry a lot of weight.“While the Volvo name replaced Ingersoll Rand on ourmachines within the first 12 months, we’ve retained the names ofBlaw-Knox – which started in road construction in 1929 – andABG – which first produced pavers in 1945. They’re an assetwe’re looking to manage in a very careful way.”Volvo Road Machinery – InnovationVolvo CE has had an illustrious past when itcomes to road machinery – and the road aheadcertainly looks promising. The following timelineshows some of the many key developmentsover the past 180 years.1886First Champion motorgraders produced (Theywere horse drawn! The firstself-propelled gradersappear in 1920).1931First Blaw-Knox paversproduced.1945First ABG paversproduced.SPIRIT10

A WORLD-CLASS REPUTATION FOR QUALITYVolvo CE itself, of course, also had plenty to offerthe road segment in return. It came with a world-class reputationfor developing quality, state-of-the-art machines, a strong R&Dfunction, a willingness to grow and expand as a company aswell as a global footprint in terms of distribution. Not that thetransition from two companies into one was ever going to besimple, as Wyant, now Brussels-based and in his current jobsince April 2012, explains.“Building or designing the new road productsis something we are good at. We also inherited gifted andprofessional staff with the acquisition, and they showed a strongwillingness to be part of the Volvo family. And we received anexpansive portfolio of products, although investment and attentionwas needed to ensure we could meet the emission regulations andimprove on our features and benefits.“And we needed to completely overhaul ourdistribution network and channels to market, integratingthem with our existing dealerships, while also gaining a fullunderstanding of this new segment and of the demands andexpectations of our new customers.”Such changes – and they are ongoing – take time andconsiderable effort, but with high expectations for quality and acommitment to the needs of the customer, the future is bright.“The opportunities, particularlyin the emerging economies,are enormous.”1950sFirst wheeled paverslaunched.1969First Ingersoll Randrollers manufactured.1984ABG introduces patentedduo-tamper screeds.1997Volvo CE purchasesChampion Motor Graders.1998Launch of ABG’spatented electronic pavermanagement system.SPIRIT11

“A deep and personalengagement betweenmanufacturer, distributorand customer is crucial.”WHY ROAD BUILDING IS A COMPLEX BUSINESSPaving and compacting roads is more complex than,say, moving soil or aggregate. It involves a perishable product,which must be laid at a particular speed and compacted to aparticular density. Mistakes are invariably expensive and hard tofix. Because of this, close relationships as well as top standards ofservice and back-up are paramount.Road customers, for instance, expect an immediateresponse when things go wrong, whether that is at 2 o’clock inthe morning (road building, indeed, is often done at night to avoiddisturbing traffic flows) or 2 in the afternoon.“We had to learn how important local relationshipsare in road building – a deep and personal engagement betweenmanufacturer, distributor and customer is crucial,” says Wyant. “It’sno good trying to copy the way you would sell and service, say, awheel loader. That would be like trying to put a square peg into around hole.”VOLVO MACHINES MAKE THEIR MARKVolvo CE’s road machines have been quick to maketheir mark as the company looks to extend its heritage.New emissions legislation in Europe and NorthAmerica has meant the ongoing re-design and re-launch of around65 models across all machine ranges over the next three years.These include models across all machins ranges, while innovativenew features – like motor grader joysticks for better control andsafety, enclosed cabs and improved comfort on other machines– are being introduced. Volvo CE has also brought the MT2000drum milling machine to market in North America.These achievements are set to be multiplied in thenear future, according to Wyant.“Our road machinery is a key focus area for thebusiness, so it will get more and more attention, ensuring wecontinue to put the right focus on integration and engagementwith the customer,” says Wyant. “It would not be a key focusarea if we didn’t know we have a lot of opportunities to improvethings even further. It really emphasizes how important roadmachinery actually is.“We have a big set of objectives to hit, but it’s beenrefreshing to see people’s willingness to accept that challenge andreally push to make a difference. My role is to make sure we havethe key activities, actions, road maps and strategic objectives laidout so we can all work in unison to get ourselves there.”Text: Tony LawrenceWyant, though, says that developing such closerelationships suits the Volvo CE style of working perfectly. “Theseare the relationships we want to have with our customers. Wewant customers who value real quality and real communication.For us, that’s a match made in heaven.”2006Volvo CE motor graderslaunched with 11 speedtransmission.2007Volvo CE acquiresIngersoll Rand road division.2010Volvo CE introducesSmart Power (a selectableoperating mode cuttingfuel consumption by up to15%) for its compactionmachines.2012Volvo CE launches theP7820C and P8820C ABGtracked asphalt pavers and theDD25 double drum compactorat Intermat in Paris as part ofmore than 60 road machinerylaunches over three years.SPIRIT12

Australia getsWise aboutCarbonCarbon is the basis of all life onEarth, and when organic carbonis added to our soil at the rightdosage, it naturally promoteshealthy plant growth – asone Western-Australia-basedcompost specialist explains.SPIRIT13

Home to the world’s largest collection of wild flowers, oneof the most popular wine-producing regions, long whitebeaches and one of the planet’s oldest surviving cultures– Western Australia (WA) has a lot to boast about. To preservethese idyllic natural surroundings, environmental care is taken veryseriously – and one soil management company is making its owncontribution to the cause.C-Wise, an end-to-end provider of waste managementand soil improvement solutions, is dedicated to managing the Earth’sresources intelligently. This means educating its customers on thebenefits of replenishing organic carbon into depleted soils to promotehealthy, sustainable plant growth. At the company’s production sitein Nambeelup, 70 km (43 miles) south of Perth, WA, the company’sdedication to environmental protection is immediately evident whenyou see any of 108 bird species flying around the site. The company’sfounders, Andy Gulliver and Dave Cullen, still proudly lead thecompany after 16 years and have recently rebranded as C-Wise fromtheir former name, Custom Composts.The company now operates in three distinct categories:C-Renewal, the arm of the business dedicated to organic wastemanagement; C-Life, the production of humus rich composts andmulches; and C-Balance, producing carbon-rich soil and plant growthtreatments for sustainable farming. Cullen says: “We have come along way since 1996 when we started out with just five people –we’re now 25 and growing. But our vision of improving the way foodis grown has remained the same.”C-Wise’s philosophy of promoting sustainable farmingmethods using carbon-balanced soil is based on years of researchand development by its in-house chemists, soil and waste specialists– even a zoologist. The company works with contractors that havesimilar values to its own, and that makes Volvo ConstructionEquipment a perfect match.The company’s growing fleet now includes four L90Fwheel loaders, fitted with Volvo Genuine buckets. They are used toshift waste from the food and agricultural industries, pig and chickenmanure, and materials from the forestry and mining sectors andprepare the materials in piles for the composting process to begin.The wheel loaders are integral for the management of the compostprocess and are occupied up to 12 hours a day, six days a week.The operators’ choiceClint Liddelow, production manager at C-Wise, says:“When our operators are working 12-hour shifts in the machines, wewant to make sure they’re comfortable. They really like the Volvomachines over any other brand. Some even say that they feel likethey’re cheating us because after their shift they feel like they’ve onlydone three-quarters of the time, thanks to the comfort drive control(CDC) steering which makes handling the machines easy.”“When our operators areworking 12-hour shifts in themachines, we want to makesure they’re comfortable.”SPIRIT14

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For Liddelow, operator comfort results in extraproductivity, but that’s not all. “The environment we work in isvery dirty and corrosive, and it’s essential the machines are keptclean,” he says. “Volvo design makes it easy and safe to carryout maintenance and cleaning. Volvo really has thought of itsmachines from an operator’s perspective – even the little things,like easy-to-clean floors.”More than machineryC-Wise has worked closely with Volvo ConstructionEquipment’s Australian dealer CJD Equipment for the last 15years. CJD has helped to find the perfect machinery to suitC-Wises’s application needs. Keen to stay at the pinnacle ofemerging technology, C-Wise trades in its construction equipmentafter around 10,000 operational hours meaning that it’s alwaysrunning with a young and efficient fleet.“We want safe, reliable machines – and that’s whywe choose Volvo. But it’s also about the whole package that wereceive from CJD Equipment. The service package includes 500-hour service checks – and its experienced technicians are alwayson hand should any of the machines break down,” says Liddelow.Volvo machines also come equipped with an on-board telematicssystem that allows owners to remotely monitor fuel consumptionand productivity. “Tools like MATRIS and CareTrack act as atraining tool for our operators, as we can use the data to educatethem on how to improve their overall performance and maximizefuel efficiency,” explains Liddelow. “At the moment we’re using8-10 liters (2-3 gallons) per hour across the machines, which we’revery happy with.”“We want safe, reliablemachines – and that’swhy we choose Volvo.”Taking nature seriouslyC-Wise initiated a partnership with a local high schoolin the nearby town of Pinjarra 10 years ago, inviting studentsto the site to learn from real-world experience. As part of theirCertificate II in rural operations, the students come to the siteeach week to run sheep and cattle, tend the vegetable garden andlearn about environmental care. “The program opens the youngergeneration’s eyes to a different career path,” Liddelow explains.“And at the same time, we are passing on a valuable messageabout environmental protection and sustainable farming.”C-Wise has done such a good job of harmonizing itsproduction methods with nature that even some unexpectedguests have made themselves at home there. Recently oneoperator found a tiger snake in the bucket of his Volvo L90Fjust as he was about to unload. Tiger snakes are as dangerous asthey sound, growing up to two meters long and possessing deadlyvenom. “We look out for all our wildlife here and saved the snakefrom a journey through the trommel screen,” says Liddelow. “Butit was quite a surprise for the operator that day!”A bright futureWith business flourishing, C-Wise is looking to thefuture and plans further expansion. “We are currently investigatingour options to open another site,” says company owner, DaveCullen. “As we move into our next chapter, we are embracingnew technology in all areas of our production, and Volvomachinery is a part of this. As our company – and our fleet ofmachines – grows, tools such as MATRIS and CareTrack becomeeven more valuable to us, as they allow for remote managementand provide us with valuable data to enhance efficiency andproductivity.”Text & photography: Holly BraceSPIRIT16

SPOT LIGHTThe DealersIt’s a big deal for Volvo Construction Equipment.SPIRIT17

“We want a dealer who embraces our medium to long-term strategy.”Eberhard Wedekind, Exexutive VP Sales and MarketingIncreased cooperation betweenVolvo Construction Equipmentand its expanding global network of dealersis YIELDING richer dividends for both sides ofthe partnership.“Investing in our dealers is anabsolutely key element of our operations,” saysEberhard Wedekind, Executive VP Sales andMarketing. “It is crucial for Volvo ConstructionEquipment (Volvo CE) to have strong,independent dealers for the implementation ofour strategy. The dealers operate at the front endof the business, and the closer we work together,the better for us both. We have been makinggreat strides in trying to tighten our partnershipbased on a shared vision.”Volvo CE believes that a globalnetwork of privately-run dealers is a superiormodel to owning and managing the outletsthemselves. The strategy is based on the simpleconviction that a business-hungry, highlymotivated, financially strong independentdealership will always strive to increase its share of the local market. As an originalequipment manufacturer (OEM), Volvo CE is responsible for product planning,development and manufacturing. The dealers take care of the retail sales, supportedby Volvo’s regional organizations.“We believe in independent dealers; we trust in entrepreneurship,”says Wedekind. “The trick is to find the right one aligned to Volvo’s vision.”SPIRIT18

Focusing on our customers’ needs.“I want to make the dealers transparentand make the partnership even closerthan it already is.”It is Wedekind’s strongly held conviction that aligningthe dealer’s strategy with Volvo CE’s is absolutely vital to thesuccess of both parties.“We want a dealer who embraces our medium-tolong-term strategy. If we say we want to focus on, for example,our compact excavator range or road machinery because we areinvesting heavily in them, then we want and expect our dealers todrive market share in these areas. They can’t just pick and chooseand say, ‘We like your large excavator range and loaders, but wedon’t want your compact or road equipment’. Alignment meansgrowing with Volvo in line with our strategies and product range.If there’s too much friction, the partnership won’t be a success.”Strength & GrowthThe dealer’s alignment with Volvo’s strategy and vision,Wedekind stresses, must cover every aspect of its operations, fromtop to bottom, from hard products to soft. “The soft side of thebusiness is equally important. Our dealers have to understand andimplement our view of customer solutions and represent us interms of branding; this also includes chemistry. The dealers needto embrace our values and leadership principles.”The close working relationship between Volvo CEand its dealers is given formal expression and structure throughthe partnership development process (PDP). Once a year, a groupof Volvo managers meets the dealer principal and his most seniormanagers for a two-day workshop to define targets for theperiod ahead based on a very detailed action plan agreed bythe two parties.“We start by sharing our plans with the dealer, sayingfor example: ‘We want to double or triple our business in yourregion in the next four or five years. This is what we have to doon the Volvo side to achieve that, and this is what we believeneeds to be done from your end.’ That might entail the dealerbringing in more fully trained salesmen or trained mechanics, orit might be improving the servicing of vehicles or increasing thepoints of sale.“I want to make the dealers transparent and make thepartnership even closer than it already is. Simple as it sounds,SPIRIT19

I’m a believer in a clear-cut, straightforward action plan with atimeline. When I see that, as well as a sound follow-up strategy,then I feel comfortable that things will happen.”Volvo has 210 dealer partners located in every regionof the world, but the overall strategy for each is broadly similar.(A further 150 dealers are operated by SDLG, a separate dealernetwork, based mainly in China.)“The dealership model we envisage is almost identical.Yes, there are cultural considerations to take into account but thedifference between dealers from region to region is not as great asyou may think. At the end of the day, wherever in the world theyare operating, our customers want the same thing: high qualitymachines and first-class service.”Building StrategyThe dealerships are happy to buy into Volvo CE’sstrategy because they understand that what works for them, worksfor Volvo. If the strategy were to fail for the dealer, it would failfor Volvo, too. The relationship is symbiotic and interdependent.“At the moment, they are pleased that we have aclear strategy that reflects the changing world and the changingconstruction equipment market. We have been shifting our focusmore towards the emerging markets, building the strategy andthe product development for the future in line with these globalmarket trends, and they are very happy seeing us investing into thecycle. They understand that it is very important we stay close andstick together. What they don’t want is for us to keep changingour strategy and tactics. For a dealer, a three-year strategy period isnothing. He is looking much longer term. He wants continuity, aclear medium-to long-term strategy and a reliable partner. That iswhat we strive to provide.”“A good dealer has tremendousopportunities to grow with us.”“We are all in this together. We are mutuallydependent to a major degree. We simply cannot operate a ‘longarm’strategy. The closer we work together, the more aligned weare, and the greater the chances of making significant advances inthe years to come.”Text: Niall EdworthyBased on this clear vision for the future, Wedekind isoptimistic that the ever-closer partnership between Volvo and itsdealers will continue to flourish for years to come.“I believe in our strategy,” he adds. “If dealers can becritically constructive in their feedback to us and still buy into ourvision, then the future looks promising on both the hardware sideand the customer solutions side. A good dealer has tremendousopportunities to grow with us. We are in a growing business, andwe are one of the major players with a tremendous brand, so if adealer is aligned to our growth strategy, it will be successful.SPIRIT20

Taking a glimpseinto the futureof road machineryOver the next three years, Volvo ConstructionEquipment will launch a record number ofstate-of-the-art road machines.SPIRIT21

For those not willing to wait for Volvo’sinnovative new machines to hit the market, 2012 provideda glimpse into that future, via the company’s P7820C andP8820C ABG tracked asphalt pavers and DD25 doubledrum compactor.These new models, unveiled at the Intermatshow in Paris earlier in the year, have been turning headsever since, and not just because of their innovativefeatures. Some people still seem to besurprised by just how far down theroad Volvo ConstructionEquipment’s (Volvo CE)road construction productportfolio has come in sucha short period of time.“Thesemachines are just afew examples of theinvestments that VolvoCE has made – andcontinues to make – inits road portfolio,” says SamWyant, program manager of VolvoCE’s Global Road Program. “Volvo CE willhave launched more that 60 new road products over the lastthree years”The P7820C and P8820C not only look the part;they act it out as well. Proud members of an ABG paver heritagestretching back to 1945, they boast independent travel drives,electronic traction control and a powerful D8 six-cylinder, sevenliterVolvo engine that more than meets all the latest NorthAmerican and European emission standards.MASTERING STEEP CLIMBS AND TIGHTTURNSThe P7820C’s engine produces 175kW,and it can pave widths of up to 11 meters(36ft), whether on the flat or up steep climbsand around tight turns, while its biggercounterpart – the P8820C– has a 200kW engineand spans up to 13 meters(42.7ft).The Stage IIIB /Tier 4 Interim emissionslegislation, in further protectingthe environment, demanded majorchanges to existing engine technology. But thenew standards at the same time inspired VolvoCE’s designers to seize the opportunity toboost performance.More power, though, was onlyone consideration. Another was betterfuel efficiency. Paving jobs do not requirefull engine power all of the time, whichis why the P7820C and P8820C areequipped with the Smart Power modewhich, selected by the operator, lowersRPM to match the demand for powerand leads to fuel savings of up to 30%.As always with Volvo CE,operator comfort – and thus operatingefficiency – was also a priority.LESS NOISE, LESS OPERATORFATIGUENoise levels have beenreduced, via both the engine and newsound-lowering components. In somecases – when using Smart Power, for instance – noise hasbeen slashed by 50%, which should delight both operatorsand the general public when machines are used in urban areas.Operator fatigue is also minimized by a large,ergonomically designed working environment that offers acommanding all-round view, as well as by an adjustablesitting position and a control panel that can be swiveled,tilted and extended.The machines’ latest intuitiveElectronic Pavers Management II system,with its large color screen, controls all pavingprocesses. It also monitors fuel consumption,provides maintenance alerts and saves machinesettings so they can be recalled when similarwork conditions reoccur.The Volvo ABG modelsoffer both fixed and extendingscreeds, which laydown industryleadingmats interms of quality,uniformity, texture,density andsmoothness.SPIRIT22

“These machines arejust a few examples ofthe investments that VolvoCE has made – and continues tomake – in its road portfolio.”SPIRIT23

“Volvo CE will have launched more than 60new road products over the last three years”EASY MAINTENANCEAs for the numbers, they speak for themselves, withthe P8820C ABG placing 1,100 tonnes per hour and the P7820CABG 900 tonnes.The high-frequency DD25 compactor, in contrast,is designed for smaller jobs, while fitting into the 2.5 tonneclass - the most popular size in Europe.As with the pavers, it is easily maintained, withaccessible, ground-level service points. Both drums featuremaintenance-free eccentric bearings that are sealed andlubricated with lithium grease to tolerate higher temperaturesand rotating speeds.Powered by a new fuel-efficient three-cylinder dieselengine producing 24.8kW, its seating position and engine coverdesign maximize operator visibility, with the drum edges clearlyvisible whether going forwards or back. A safety switch also shutsdown the engine and applies the brakes should the operatorget off the seat.The drums are perfectly round, while the outer 20mm(0.78 ins.) is chamfered and the edges are given a rounded 9mm(0.35 ins.) radius profile to avoid marking the asphalt.Both drums are fitted with cleaning wipers made ofurethane, which is more resistant to cuts and tears than the morecommonly used rubber.COVERING ALL THE BASESFive years ago, Volvo CE’s specialized input to roadconstruction focused solely on its motor graders, supported by itsfleets of excavators, wheel loaders and articulated haulers. Todayit covers all the bases.It is also beginning to make an increasing impactthrough its road machinery innovations, such as its motor gradersand their optional joystick controls.The two joysticks, situated to the left and right of theoperator seat and offering superb, sensitive touch particularly suitedto low-speed work, replicates the steering wheel when required, aswell as controlling the moldboard and other hydraulic functions,the machine’s articulation and its transmission.With Volvo CE’s plethora of new models coincidingwith the latest North American and European emissions legislation,the company’s road machinery designers and engineers – as well asthe dealerships and sales force – have never been busier. Nor havethey ever turned so many heads.SPIRIT24

Focus onLeadership –Focus onPeopleWith high levels of Employee Engagementand low levels of employee turnover, VolvoConstruction Equipment has always been anattractive company to work for, but an upgradedsystem will streamline employees’ journeysthrough the leadership pipeline.SPIRIT25

The key to this improvement lies with Volvo CEPresident Pat Olney’s insistence on a more thorough and activetalent review process, combined with some innovative thinking inthe human resources department and the cooperation of Volvoemployees at all levels. As ever, Volvo CE is moving forward as ateam.“To a large extent we grow our talent internally, bothwithin Volvo Construction Equipment and the Volvo Groupas a whole,” says Richard Eyres, senior vice president of humanresource management at Volvo CE. “We invest a considerableamount of time and senior management attention to the talentand succession process. This is an annual process throughout theVolvo Group to review the succession and development for oursenior management, but under the leadership of Pat Olney, theEMT (executive management team) now updates and reviewsthe succession and development planning process for our seniormanagement levels three times a year.”“It’s a structured process by which we identifyjobholders’ potential next moves and their potential successors.This focuses on possible successors for the more senior levelsin the organization. We review their current performance, theirpotential, possible next positions and make plans for their possiblereplacements. We take this process extremely seriously, and wefelt that once a year was not enough to assess the depth of ourmanagement talent and the strength of our leadership pipeline.We want to have it as a live, ongoing process.LeadershipIf it was Pat Olney’s original initiative to makethe talent review a live, on-going process, the human resourcesdepartment under Richard Eyres has fleshed out the initiativeand added a further process called JFT2, which stands for Jobsfor Talent, Talent for Jobs. The process is run every month withineach regional management team and each of the company’s globalfunctions. JFT2 is now becoming a dynamic supplementing theinternal recruitment and succession system. The senior managerswho make up those teams identify management positions that willcome available in the foreseeable future and also high performingpeople within their organizations who they believe are ready forthe next development move. This is in addition to the standardpractice of advertising all vacancies internally and helps ensure theflow of talent up and through the company.“This process only started at the beginning of 2012,but it is now gaining momentum,” adds Richard. “In terms ofdeveloping talent, we also put a lot of focus on what is knownas the ‘leadership pipeline’, a global concept that the Volvo Groupintroduced three years ago. We categorize management intodifferent levels, each with clearly defined leadership competences;this has been a major step forward, and we now have clearlyidentified these competences attaching to each level across theVolvo Group. From it, we learn how we match against therequired competences of both current and future leadershiproles and where we need to improve.”“It’s a prerequisite that we havethe best leaders in our industryin order to deliver an industryleadingperformance.”Richard Eyres, senior vice president human resourcemanagement of Volvo CE.SPIRIT26

Volvo CE President Pat Olney.“We take this process extremelyseriously, and we felt that once a yearwas not enough to assess the depthof our management talent and thestrength of our leadership pipeline.”SPIRIT27

“We believe that the richer thediversity of the workforce, thebetter quality decisions wewill make.”LoyaltyIt is testimony to the mutual loyalty of employer andemployee that only rarely is Volvo CE obliged to recruit fromoutside the company.“We get quite a few unsolicited applications frompeople in the industry – and from beyond it – because we havea very good reputation and are seen as an attractive employer,”says Eyres. “Very occasionally, we will search externally forspecific competencies, and head-hunters will occasionally flag upthat somebody working for a competitor is interested in joiningus, but our internal management pipeline is the main source ofmanagement progression, and our retention rates are high, soit happens infrequently.” The culture in Volvo has been a keyfactor in attracting and retaining some of the best talent withinthe industry.“Volvo is perceived as a successful company witha strong brand and excellent products, but there’s more to itthan that,” says Eyres. “People identify with our core values ofquality, safety and environmental care. We are also seen as ahighly responsible and ethical company. ‘The Volvo Way’ – theumbrella term for the Volvo Group’s code of behavior, cultureand values – represents a strong statement of identity and beliefsthat lays out clearly what Volvo stands for. People want to be partof a company that behaves and lives our very clear values,” saysRichard. “They like the Volvo way of working: the respect, theteamwork, the technological innovation and creativity. We takeit very seriously, and if people don’t behave in accordance with it,they are quickly challenged – not just by management butby employees.Diverse and Inclusive“Volvo CE is the most diverse company within theVolvo Group in terms of nationality, but diversity is an area,where we want to do even better, most especially in achieving agreater proportion of female managers.”“This has become one of our top-priority objectives. Itis well established that a diverse team in terms of, for example,age, nationality and gender, makes for a more successful business.Our industry traditionally is very male-dominated but we arecontinuously asking how we can make ourselves more attractive towomen. We believe that the richer the diversity of the workforce,the better quality decisions we will make.“Diversity in itself, however, is not sufficient. We needto have inclusiveness too. Everyone in our teams needs to feelfully included and valued to make a real contribution to what weare trying to achieve.”Eyres and Pat Olney are of the same view thatleadership is critical to achieving that diversity and inclusiveness,as well as the wider objectives of delivering business results andthe execution of the company’s strategic objectives through takingfull responsibility for fully engaging our workforce throughout ourentire organization.“It’s a prerequisite that we have the best leaders in theindustry in order to deliver an industry-leading performance,”Eyres says.Text: Niall EdworthySPIRIT28

GLOBETROTTINGCosta RicaWhy Costa Rica and Volvo Construction Equipment are the perfect fit.SPIRIT29

“Another key factor was how happy the operators were with the machines.”250 machines are currently working on the project.Costa Rica HAS A LONG HISTORYOF IMPRESSING OUTSIDERS. It soimpressed Christopher Colombus at thestart of the 16th century, that he christenedit “Rich Coast” after meeting natives adornedin gold and jewels.Today the country, bordered byNicaragua to the north, Panama to the south and bythe Pacific Ocean and Caribbean Sea, impresses forother reasons.Its long-term stability as a democracy,for instance, makes it stand out in Latin America.It also holds an impressive record in terms of humandevelopment, social equality and environmentalsustainability. Eco-tourists, meanwhile, flock to theplace, as do environmentalists – especially since theCosta Rican government announced plans for it tobecome the world’s first carbon-neutral countryby 2021.Equally, though, Costa Ricans can beimpressed by outside expertise. Like that of VolvoConstruction Equipment (Volvo CE). How else canone explain the decision by government-owned power company Costa Rican ElectricityInstitute (ICE) to choose 40 A40F Volvo CE articulated haulers to help build thelargest hydropower plant in Central America?The statistics of the project, which centers on the building of a $1 billiondam just south east of the city of Siquirres in the province of Limón, take yourbreath away.SPIRIT30

The articulated haulers have a very good reputation.“It’s the biggest single purchase orderfor construction equipment ever seenin Costa Rica.”Sited across the spectacular 145km (90-mile)Reventazón river, running from the heart of the Talamancamountain range through tropical forests to the Caribbean sea, thedam will be 537 meters (1762ft) wide and 130 meters (427ft)tall. In producing 305.5 MW of power, it will provide electricityto more than half a million homes in the region – equating tosome 11% of domestic demand.A 1.68km (1-mile) water tunnel will also be builtbetween the dam and powerhouse with four turbines, as well as anetwork of roads and supporting infrastructure. And there will alsobe 20 million m³ (706 million ft³) of soil to be moved before theprojected completion of the work in 2016.You would have thought ICE would have demandedto test the articulated haulers for several weeks (or even months)before awarding the contract to Volvo CE ahead of its majorinternational rivals. But you’d be wrong.“They already knew all about them. They have a verygood reputation in the region anyway, but one of their key on-sitecontractors is a big customer of ours and he was already usingthem,” says Alvaro Ochoa, Volvo CE’s area manager for CentralAmerica and the Caribbean and who joined the company withIngersoll Rand in 2007.SPIRIT31

“So it was easy for them to monitor their performanceand fuel efficiency. Another key factor was how happy theoperators were with the machines.”An earlier tender put out by ICE for 18 BL70 backhoeloaders had been won by Volvo CE in tandem with Macori(Maquinaria Agricola de Costa Rica), its regional dealership.Alisson Brandes, Volvo CE’s director for Mexico, Central Americaand the Carribean, was really happy when Volvo CE won thistender, but it was the deal for the articulated haulers that reallydelighted him.“Hector Cruz, the head of Macori sent us an emailsaying: ‘We won it! We did it!’ They had an office party tocelebrate, and so did we in Mexico City.“It’s the biggest single purchase order for constructionequipment ever seen in Costa Rica, and a huge success for VolvoCE’s Central American sales area and Volvo CE Latin America.There won’t be anything to match it for at least 10 years.”“We worked really well together as a group and withMacori to prepare the tender. It was a complex process and tookmore than a year to complete.” says Brandes.To date, around a quarter of the soil at the worksite –some five million m³ (177 million ft³) – has been excavated andmoved. The Volvo machines, says Brandes, are working well. Nochances are being taken, however. As part of the deal, Macori isestablishing a temporary ‘branch’ on site, consisting of a serviceworkshop and parts inventory to support the fleet of Volvo CEmachines working on the project.In all, there are about 250 construction machinescurrently working on the project, around a third of whichare Volvos, including some large excavators owned bysub-contractors.There was one final and very good reason forVolvo CE machines – which make up 25% of all constructionequipment sales in Costa Rica – to be selected by ICE.Costa Rica’s international reputation for beingenvironmentally friendly – in 2012 it produced more than90% of its electricity through renewable sources, with some80% coming from hydro-electric installations – provided aperfect fit with Volvo CE’s core values of quality, safety andenvironmental care.“Local people have also been fast-trackedinto the workforce on the dam.”was consulted by ICE long before the actual work began, ensuringthat no resettlement of the local population would be required.New schools, streets and homes are being built as part of thescheme, along with the provision of subsidized electricity for thearea as well as guaranteed water supplies for local fruit plantations.And local people have also been fast-tracked into the3,000-strong workforce working on the dam, while measures havebeen drawn up to protect the surrounding area, right down to itsflora and fauna, jaguars and wild cats.Text: Tony LawrenceEnvironmental care, indeed, has been at the forefrontof the plans for the dam from the very start. The local populationSPIRIT32

Workingaround theclock at theworld’s largestundergroundmineSituated within the Arctic Circle wheretemperatures fall to -30°C, a fleet of VolvoConstruction Equipment G-Series wheel loaderskeeps warm by shifting 76,000 tons of iron ore.The world’s largest underground mine reallyputs Volvo’s revolutionary new V-ACT Tier4i/Stage IIIB engine to the test.SPIRIT33

A fleet of Volvo Construction Equipment (Volvo CE)wheel loaders operate in temperatures below -30°C at the world’slargest underground mine. Located in Lapland, northern Sweden,the Kiruna Mine is blanketed with snow during the wintermonths, but despite extreme conditions, machines work aroundthe clock to transport 76,000 tons of iron ore two kilometers upfrom below ground every day. LTH Traktor – a sub-contractorof one of the world’s leading iron ore processors, Luossavaara-Kiirunavaara AB (LKAB) – ensures that its machinery is aspowerful, fuel efficient and emission-friendly as possible to keepthe site operating at peak performance.“another consideration for uswhen we purchase constructionequipment is that we are contracted tomeet LKAB’s stringent emissions regulations– and therefore our constructionmachinery must too.”“Fuel is a huge part of our budget – and withdiesel prices continuously rising, it’s vital for us to reduce ourfuel consumption for the economics of our business,” saysMartin Fredrikson, site manager for LTH Traktor. “But anotherconsideration for us when we purchase construction equipmentis that we are contracted to meet LKAB’s stringent emissionsregulations – and therefore our construction machinery must too.”LTH Traktor operates 177 Volvo CE machines atthe Kiruna Mine site to transport and load raw ore and grey rock– including 19 excavators, 15 articulated haulers and 43 wheelloaders. Its fleet includes eight wheel loaders from the newlylaunchedG-Series (one L60G, two L120Gs, one L180G, threeL220Gs and one L250G) that are in operation for 20 to 24 hourseach day.The best machines for the jobVolvo CE’s new G-Series wheel loaders are lean,clean machines that offer a more efficient, low-emissions engine.The V-ACT Tier 4i/Stage IIIB offers high torque performance towork more efficiently at low engine speeds and is combined withperfectly-matched electronic fuel injection for optimal power andlow fuel consumption.Volvo CE’s revolutionary new V-ACT Tier 4i/Stage IIIB engine keeps things movingat the world’s largest underground mine.SPIRIT34

“Since purchasing the latest Volvo CE G-Seriesmachines, our operators have commented that they areconsiderably more fuel efficient – and of course the engineand transmission play a big role in that,” says Fredrikson.Today many markets demand that constructionmachinery feature a Tier 4i/Stage IIIB classified engine that canremove NOx and particulate matter from emissions. Volvo CE’sG-Series wheel loaders’ regeneration system works effectively inthe background to remove these emissions, without having tostop the machine or losing any power. By combining the newregeneration system with better fuel consumption and enhancedmachine performance, operators can carry out regeneration whilethe machine is still in operation.Fredrikson says: “The regeneration function works well,and we’ve noticed a big decrease in particle emissions. This hasbeen extremely positive for our underground work environment.Volvo’s engines are a lot further ahead in terms of technology –this manufacturer has really listened to the customers and workedhard to meet their needs.”Care keeps machines on TrackLTH Traktor works with its local constructionequipment dealer – Swecon Anläggningsmaskiner – to find thebest machinery for the application and to adapt that machineryto work underground. “The support Volvo CE and its Swedishdealer provides us with is invaluable,” Fredrikson explains.“Swecon specialists attend the site to demonstrate to our operatorshow to reduce both fuel consumption and machine wear.”“Volvo engines are a lot further ahead interms of technology – this manufacturerhas really listened to the customers andworked hard to meet their needs.”Swecon’s technicians have the tools and training toservice and maintain Volvo CE machinery and keep it at peakperformance. Using the industry-leading diagnostic technologyand only Volvo Genuine Parts, these specialists know how tohelp customers maximize machine uptime, productivity andresidual value through routine wear inspections, comprehensivemaintenance and repair agreements.SPIRIT35

Every G-Series wheel loader comes fittedwith CareTrack, Volvo CE’s telematics system, as standard.*It provides information for better planning and smarter working– including fuel consumption reports, location reports, fault alertsand service reminders.“The support Volvo CE and itsSwedish dealer provide us with isinvaluable,” Fredrikson explains.“Swecon specialists attend the siteto demonstrate to our operatorshow to reduce both fuel consumption andmachine wear.”15 Volvo articulated haulers and 43 Volvo wheel loaders load and transportraw ore and gray rock around the clock at the Kiruna Mine.“CareTrack is very helpful for us to measurethe machine’s performance,” Fredrikson concludes. “It’s beneficialto see which machines suit which jobs best, and our operatorscan also monitor their own performance. Our main aim is todeliver on the promises we make to LKAB – and to do thiswe need excellent support for our machines to ensure they’rein operation as much as possible. Volvo CE offers us thissupport when we need it.”Text: Holly Brace(*in regions where CareTrack is available)Volvo CE’s G-Series wheel loaders’ regeneration system works effectivelyin the background to remove emissions – without having to stop themachine, or even lose any power.To see the film go to:http://www.youtube.com/watch?v=qg0hzoPglQ4&feature=plcpFor further information, please visit: www.volvoce.com/pressSPIRIT36

Just the SolutionIn a market that grows increasinglycompetitive, and in a world stillreeling from the chill of recession,there is no doubt that the need toengage the customer is paramount.SPIRIT37

“The challenge is not just to be efficient and goodat what we do but also to offer the right ‘bundling’or ‘combination’ of products to the customer.”Which is why Volvo ConstructionEquipment (Volvo CE) is focusing on thecustomer with their new Customer Solutionsorganization: to provide their dealers withthe necessary tools to be competitive in theirmarkets, and give their customers productsand services that enhance their experience andincrease satisfaction.Rather than simply engage withthe customer at the point of sale, CustomerSolutions has been introduced to offer aresponse to their needs over the whole lifecycle of a machine. It includes not only partsand maintenance, but also ‘soft’ products(anything other than machines), with the aimof providing a range of solutions.The different elements thatcomprise Customer Solutions are GlobalUptime Services, which seeks to connect thecustomer with the dealer across the life of amachine; Global attachments; Global FleetServices and Telematics; Global Parts; GlobalFinancial Services; Global Remarketing, whichseeks the best buy-back deals and develops thesecond life business of Volvo CE machines;and Rental Channel Development, helping ourdistribution channel to start up rental business.COMPREHENSIVE SERVICEAt the core of the CustomerSolutions program is the belief that when acustomers make an investment in a Volvo CEmachine they are making a sizeable investmentin the profitability and health of their business.Therefore the promise to offer comprehensiveservice across the life of the investment isessential.Each customer puts Volvo CEmachines to his own unique use, underdifferent conditions, which presents differentproblems that require a variety of solutions.Salespeople are the initial contactwith Volvo CE; making sure they find theright machine for the job they wish to dois their responsibility. After that, it is theaftersales staff at a dealership who will ensurethat the customer can achieve the best uptime,the lowest operating costs and the mostproductivity during the machine’s lifetime.According to Koen Sips, vicepresident of Customer Solutions, it indicatesa subtle shift in philosophy. “We are movingaway from the idea of the machine at thecenter of the process and putting thecustomer there.”“The challenge is not just to beefficient and good at what we do, but also tooffer the right ‘bundling’ or ‘combination’ ofproducts to the customer. If we are able topackage the right service contract, and havethe right financial solution in place, perhapsa system to buy back machines at a certaintime, and the Telematics system to track theperformance of their machine, then we canrespond to the customer’s needs through thefull life of the machine and build a long-termrelationship that will be to everyone’s benefit.PRO-ACTIVE“It is not just about responding,though. It is also about being proactive inoffering the customer what they want. If wegive them those tools then it puts the dealerin a much stronger position to work close tothe customer and meet their needs.”To help achieve that aim,Customer Solutions has staff in every regionin every time zone, as close to the market aspossible.The Customer Solutionsorganization also marks another subtle changein approach. As well as putting the customerat the heart of everything Volvo does, itunderlines the point that Volvo CE does notmerely sell machines. It offers solutions thatbenefit customers from the time they signa contract until they buy a new machine.All questions are answered: how will theKoen Sips, Vice President of Customer Solutions.SPIRIT38

“Customer Solutionshas staff in everyregion in every timezone, as close to themarket as possible.”SPIRIT39

“To put all theseservices under oneumbrella is a majorstep forward.”investment be financed? How can themachine be monitored to ensure maximumproductivity? What happens when the timecomes to upgrade a machine?There is also the cost benefitfor the customer. The expense of running amachine has to be considered. Rather thandeal with issues as they arise, CustomerSolutions enables dealers to take into accountthe total cost of a machine from day one.Customer support agreements can reducethe costs of maintenance, decrease the riskof downtime and ensure that the customer iscovered regardless of the pitfalls that mightlie ahead. Meanwhile, CareTrack, Volvo CE’stelematics system allows customers to monitorthe productivity and performance of their fleetand see where improvements can be made.Sips, who works in Brussels, thoughmuch of his team is based in Eskilstuna andspread across the world, is excited by the teststhat lie ahead. “To put all these services underone umbrella is a major step forward, and todo it regionally and globally is a majorchallenge, but a very nice one. CustomerSolutions is a major focus area for Volvo CE.It is a fantastic opportunity.”Text: Dan WaddellSPIRIT40

YOU KNOW WHERE YOUSTAND WITH VOLVO CEANYWHERE IN THE WORLD –AND THAT’S OFFICIAL!A Volvo machine is a Volvo machine. It does notmatter where it’s built, where you buy it or whatlanguage the dealer or salesperson speaks.The fact remains. It’s a Volvo machine.It’s not just a case of looking like one. It must sound, feeland, of course, operate like one as well. Volvo Construction Equipment(Volvo CE) customers want to know what they’re getting. Theydemand nothing less.To make sure this happens, Volvo CE offices,sales offices, engineering sites and production plants should all bemanaged in the same way,too, whether they’re in Sweden or Korea, in Brazil, India, the US orChina.Just ask Ulf Hasselgren, Volvo CE’s director of operationalmanagement system and continuous improvement. Based at thecompany’s headquarters in Brussels, he and his team have been workingon this challenge for the past three years.SPIRIT41

“We’re one organization,working under one processmodel, and with onemanagement system.”Ulf Hasselgren, Volvo CE’s director of operational management systemand continuous improvement.INTEGATED, TRANSPARENT MANAGEMENT“Before, our sites essentially looked after themselves,”says Hasselgren. “But now, after a lot of work, we’ve producedan integrated management system that is transparent and thateverybody understands.“It’s about working better as a team, so that differentfunctions and regions interact more efficiently and quickly. We’resaying we’re one organization, working under one process model,and with one management system. And if we operate better, thatfeeds through to our customers and stakeholders. Basically, theyknow what they are getting when they deal with us.”This focus on the company’s internal processes andmanagement culminated in November 2012 with Volvo CE beingcertified, on a worldwide, company-wide scale, to the standardsof ISO 9001 (Quality), ISO 14001 (Environmental Care) andOHSAS 18001 (Occupational Health and Safety) –standards, of course, which link perfectly with theorganization’s core values.These voluntary international standards helporganizations become more efficient through meetinglevels of performance in terms of products, services andbest practice.A COMPANY THAT REALLY CARESPut another way, if you deal with a company with aworldwide certification in ISO 9001, ISO 14001 and OHSAS18001 you know you are dealing with a company that is unifiedand aligned in caring – really caring – about the way it is run(or, as is the case with Volvo CE, one that really cares about theenvironment and safety as well).Volvo CE is one of the first companies in the industryto gain this worldwide certification, which increases its stature andcompetitiveness.“We already had internal standards and checks, ofcourse,” says Hasselgren. “This, though, made it more public andmore transparent. We went through a big worldwide exercise tointegrate our management systems into one. It doesn’t matterwhere you are or what area you work in, you must comply withthese standards. “Then we called in an outside, certified auditor tocheck up on us.”That involved giving around 40 auditors the rightto visit 25 Volvo CE sites worldwide – including the Brusselsheadquarters – and checking on any process they chose. Theirjob was to try and spot weaknesses in the system and call forimprovements where necessary before a worldwide certificationcould be awarded.HARMONY AND SIMPLICITY“That sounds like a big task in itself, but the realchallenge was to get to that point over the previous two to threeyears,” adds Hasselgren. “It was a long journey, going through everyfunction and process and harmonizing things.SPIRIT42

“Overall, it means us takingquality, environmental careand occupational health andsafety even more seriously,and continuing to do so inthe future.”“That does not mean we all have to work identicallyeverywhere. We do things differently when it makes sense, orwhen there are different legal requirements in different parts ofthe world. But when we place an order with a supplier, do weneed to do that in 15 different ways? Probably not. This will helpsimplify things like this and save costs along the way.”Volvo CE, says Hasselgren, was a well-managedcompany before. Now, though, it is transparently so. Witheveryone following the same rules, internal communication isquicker and easier. “In its simplest sense, it makes it easier to findsomeone you need to speak to within the organization on theother side of the world.SAFEGUARDING CUSTOMERS’ INTERESTS“As one worldwide company, we’re now saying wewant to make 100% sure that we comply everywhere and don’tleave anything to chance.“That also means we’re safeguarding our customers’interests. We’re working together to make sure things are righteverywhere in the world, and at every moment.” Receiving theworldwide certification was an exciting moment for Hasselgren.He had begun working on management systems way back in2004, when Volvo CE’s articulated hauler, excavator and wheelloader business lines operated much more independently ofeach other.“We’ve really shifted gears since then,” he says. “Yes,it’s been exciting, knowing the journey we have followed. But thisis not the final destination for us. This just confirms we are on theright track. We need to keep on improving and not slow down –and that’s what I’m looking forward to.”Text: Tony Lawrence“Overall, it means us taking quality, environmentalcare and occupational health and safety even more seriously, andcontinuing to do so in the future.”SPIRIT43

VolvoLooking Beyond the Machine100,4Will Volvo Construction Equipment be at the Bauma2013 international construction industry trade fair inApril? Of course. Right at the very heart of the event- as always.But will it exhibit its machines there? No, not exactly.‘Exhibit’, after all, can sound rather static. Volvo will betrying to take things further, by actively displaying to customersand customers-to-be what its machines stand for – and what theycan do.It goes without saying that the company’s awardwinningdesigns will catch the eye in Munich, Germany, but theemphasis will be on looking beyond the machine, focusing onperformance rather than just looks, and highlighting how a Volvocan help build an owner’s business, both on a daily basis and overthe longer term.Bauma, established half a century ago and heldevery three years, is the world’s largest and most importanttrade fair for the construction equipment industry. More thanhalf of its 400,000-plus visitors will hold top positions in theirorganizations, while almost 80% of those attending will becorporate decision-makers.DYNAMIC PERFORMANCEBy concentrating on showing how its machines performin dynamic, real-life situations and how they are designed to worktogether, Volvo CE is confident of simplifying some of their mostimportant purchasing decisions.SPIRIT44

The company’s newest models – and what they candeliver, of course – will take pride of place at Volvo CE’s ‘Rockto Road’ indoor and outdoor display in Munich (‘Rock to Road’because that is what the company does, covering all the basesfrom quarries, mines and forests and progressing right through toputting the final touches on roads and city infrastructure).The full scope of Volvo CE’s product range will beillustrated by the new ECR25D, ECR58D and ECR88D shortradiusexcavators at one end of the spectrum, and the newP6870C ABG asphalt paver at the other.The ECR models feature a narrow body design andcentrally positioned boom, as well as a superstructure so compactthat its rear swings only fractionally outside its own track width,allowing it to get extremely close to objects without risk ofcollision, and to work in the most confined of spaces.MAXIMUM SAFETYThe short front and rear radius is also well suitedto operating within a single lane of a highway, thus minimizingthe disruption to traffic flows as well as maximizing safety.This feature can sometimes be essential for companies to win roadcontracts.The P6870C paver, meanwhile, is quieter and morefuel efficient than previous models, while at the same timesignificantly reducing emissions via its new Stage IIIB/Tier 4iVolvo D6 engine. Aimed at wider paving jobs over rougherterrain, it also boasts a new fume extraction system. The machine’sunique hydraulic self-leveling suspension system ensures consistenttraction as well as smooth paving.In all, 3,256 exhibitors are due to take part in theweek-long fair between April 15-21. Volvo CE will commandtwo areas at the New Munich Trade Fair Center, one inside andSPIRIT45

Other events at Bauma will include interviews withproduct and service experts, interactive video screens and ‘proveit’ points – an exciting and challenging first for the company,where Volvo CE’s highly-trained technical staff explain how andwhy their machines keep living up to their reputations as marketleaders.one out. Again, the emphasis will be on the full breadth of thecompany’s product portfolio.The outdoor area will feature a machine show setto music, an operator competition, an oil and gas pipelinedemonstration and a road building display.The list of new models at the fair will also include thehigh-reach EC480D demolition excavator, a specialized machinewhich can operate at up to 27 meters while also quickly switchingto a standard boom-and-arm configuration to boost machineutilization and customers’ return on investment. Equipped withthe latest Volvo D13 low-emission engine, the EC480D highreach is better, stronger and faster than its predecessors.NEW ATTACHMENTSVolvo CE will also unveil a selection of companybrandedattachments, featuring a new range of excavator buckets,tools for the C-Series skid steers and a new hydraulic breakerrange for backhoe loaders and compact excavators.KEY BACK-UP SERVICESIndoors, the focus will be on Volvo CE’scomprehensive customer solutions that ensure customers get theright machine for their needs – through financing solutions, forexample, rental deals or the Approved Used Equipment scheme– and then keep it performing safely and economically day in,day out, thanks to Customer Support Agreements, CareTracktelematics monitoring, fleet management solutions and the use ofgenuine Volvo parts.Volvo CE’s Bauma line-up will be complementedby sister companies Volvo Penta – which is presenting its ownadvanced solutions to meet the needs of EU and US emissionslegislation – and Volvo Trucks, which will show its latestgeneration of construction-focused machines.The final word in Munich, meanwhile, will go to VolvoCE President Pat Olney, who along with Volvo Penta’s PresidentBjörn Ingemanson and other senior managers, will host aninternational press conference and question-and-answer session tohighlight where the company finds itself today, and where it isheading in the future.SPIRIT46

OPERATOR CORNERTYSON BROWN“All I’ve ever wanted to do is play in the dirt”.SPIRIT47

“Every machine is crucial on a road project, but the precision of the road that the motorgrader leaves behind needs to be nearly perfect in order to pass inspections.”Tyson Brown in a motor grader aged just 5 years old.Tyson Brown is living his dream.As a motor grader operator inthe state of Florida in the southeasternUnited States, Brown ‘plays in the dirt’every day and goes home loving his job.If the story of a young boyspending his days playing in the dirt soundsstereotypical, that’s all right with TysonBrown. Because that’s exactly what he didgrowing up, moving dirt around in his toydump truck, and that’s exactly what hewanted to do as an adult. Brown is livingthat dream today in the cab of a VolvoG930 motor grader.With a father who worked inthe construction industry for 18 years,Brown, 27, was bitten by ‘the heavyequipment bug’ early on. He recalls apicture of himself taken when he was justfour years old with a huge grin on his faceas he posed on a wheel loader.And he’s still smiling today inside the cab of a Volvo motor grader,purchased by South Florida Excavation through certified Volvo dealer FlaglerConstruction Equipment. Brown and his Volvo G930 are currently working on an 845-space parking lot for a surgical device and implant manufacturing facility near the cityof Ave Maria – about 64km (40 miles) northeast of Naples in southwestern Florida.South Florida Excavation is also installing concrete curbs, sidewalks and a new entranceroad. Joining the Volvo G930 motor grader on site are two Volvo L60F wheel loaders.SPIRIT48

Well-built roads are the product of highly skilled motor grader operation.“You need to be able to read a plan andshoot grades, as well as know the highpoints, low points, inverts and which waythe water flows.”Age is just a numberSeven years ago at the young age of 20, Brown gothis start as a motor grader operator at South Florida Excavation.One might reasonably be surprised to see such a young man inthe cab of a motor grader – operators generally cut their teeth onother construction machines for years before graduating up to thetechnically demanding motor grader. “You need to be able to reada plan and shoot grades, as well as determine the high points, lowpoints, and inverts and which way the water flows,” Brown said.“Every machine is crucial on a road project, but the precision ofthe road that the motor grader leaves behind needs to be nearlyperfect in order to pass inspections.”For two years prior to coming to South FloridaExcavation, Brown operated many other types of equipment.When South Florida Excavation gave Brown the chance to jumpinto a motor grader, it sent him down a path he is grateful to beon. “I didn’t want to sit in an office,” Brown explained. “I wantedto be in the fresh air. I love running heavy equipment, and themotor grader is my favorite. It’s a good-paying job, and I enjoy it.”Brown has proved that age has little bearing on skilllevel. He’s spent long hours perfecting his craft and has earned therespect he now receives. “Sure, I made mistakes early on, but mybosses were patient, and I learned from those mistakes. I think I’veSPIRIT49

gotten pretty good at it, partially because I just love what I do,”said Brown.Painting perfectionWell-built roads are the product of highly skilledmotor grader operation. Precise angles are necessary for properwater drainage, which in turn helps keep vehicles on the road andprevents wear and tear like potholes. The need for the road to befinish-graded down to a fraction of an inch in accuracy, thicknessand angle drives Brown to attain perfection.For Brown an empty space is like an empty canvas.“I visualize what the parking lot is going to look like when it’sfinished,” Brown said. “I can see the trees that will be planted andcan imagine where the cars will turn because you have to accountfor that. It’s very rewarding when you see it all finished. It’s like apainting that you created.”Learned on a VolvoBrown has sat in other brands, but the Volvo motorgrader is where he learned to perfect his skill. “Everything Ilearned, I learned on a Volvo,” said Brown. “I just love the Volvo.I like the throttle on the dash because it offers great flexibility.The gearshift is great – it’s forward/reverse instead of a U-shape –and it stays in gear, unlike some competitors’ models.”Tyson Brown with his Volvo G930 motor grader.“EVERYTHING I LEARNED, I LEARNED ON A VOLVO.”As you can imagine, the need for perfection isenormous at an airport, given that large, heavy jets make their wayfrom runway to gate multiple times a day, carrying precious cargo.“It will push me, and I welcome the challenge,” Brown said.Text & photographs: Diana HenryYou can bet that in the sunny and humid state ofFlorida, where temperatures often soar well into the 90s (32°C),the air conditioner in Brown’s cab is often running. “It’s alwayscool in there, even with the doors open,” Brown said. “I have hadto use the heater, but let’s face it: it’s only winter here maybe halfa day a year!”Brown will see how the lights on his G930 work soon,when South Florida Excavation takes on a taxiway project at theSouthwest Florida International Airport in Fort Myers – about58km (36 miles) north of Naples. Brown will do a lot of his workovernight, when airplane traffic is lighter.SPIRIT50

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