Innovator Spotlight: Volvo Construction Equipment

On a mission to build a better tomorrow, Volvo CE prioritized collaborative ways of working through a PLM-enabled digital thread, positively impacting both upstream and downstream stakeholders.

Optimization across product lines with a model-based approach

Volvo CE transitioned to a model-based way of working—streamlining their design processes and shifting the focus to whole product optimization through component reuse. This helped system engineers break down silos and transform R&D into a collaborative, multi-disciplinary team.

Better cross-functional communication and collaboration

Rather than working in siloed systems and manually handing over product data, Volvo CE saw an opportunity for all teams to collaboratively manage product hardware and software complexity in one place—one common set of product data to design and manufacture anywhere.

Breaking down silos between R&D and the aftermarket

Manual and paper-based processes slowed down the change notice (CN) workflow, affecting the whole change management process. Volvo CE employed PLM to drive efficiency and enable closed-loop product lifecycle management upstream and downstream.



Volvo CE manages a portfolio of products and brands that together maximize their profitability and market share. There was an urgent need to increase efficiency without compromising their ability to release high-quality, innovative products and solutions to the market. Rapidly changing market conditions, shorter lifecycles, and product features enabled through mechanical components and by smart software required them to change. A history of acquisitions led to a high level of complexity in their data, processes, systems, and organization—resulting in high costs.


Establishing a PLM Foundation

Volvo CE’s end-to-end PLM vision involves creating more value at each site through more efficient ways of working, an optimized user experience, and tool chain integration. They implemented Windchill, as it provides the processes needed to manage Volvo CE products throughout their entire lifecycle—integrating people, processes, information, and business systems. This information backbone covers planning/requirements management, product development, sales configuration, production, aftermarket, and phase-out. With Windchill, Volvo CE further laid the foundation for becoming a service-oriented solution provider. The resulting increase in efficiency and quality enables improved customer satisfaction since mistake-prone information handovers are a thing of the past.

Managing complexity with a digital thread

To manage complexity and enable concurrent design and manufacturing, Volvo CE replaced disconnected systems with a cohesive PLM-enabled digital thread.

To successfully drive change throughout the organization, Volvo CE created a digital thread and established a strong approach to program management. They used PTC Windchill’s out-of-the-box capabilities, along with PTC’s value-ready deployment methodology, to connect their vision with employees on the ground floor, resulting in an end-to-end “digital house” built on a PLM foundation.

UP TO 50%
Icon_DownArrow reduction in the number of late loopbacks
UP TO 30%
Icon_DownArrow reduction in the cost of poor quality
UP TO 70%
Increase-Arrow efficiency gain from quality of work instructions
UP TO 30%
Increase-Arrow improved change management handling
UP TO 4%
Icon_DownArrow reduction in duplicate parts
UP TO 30%
Icon_DownArrow reduction in poor data entry (human errors)

Digital innovation’s impact at Volvo CE

To realize the full PLM program scope, Volvo CE set out to unify their 13 product platforms (250+ models with thousands of options); factories throughout Europe, North America, and Asia; and users that spanned every department and geography (authors and viewers in marketing and product portfolio, technology, product platform, operations, purchasing and supplier management, and more).

Building a Better Tomorrow
From PDM to PLM
Commitment to Collaboration
Volvo CE found their way out from under legacy systems with enterprise-wide PLM. With PLM they were able to develop global solutions and align implementation plans across the organization. Learn about how they have radically improved their efficiency and ability to innovate.
With a focus on users, communities, and use cases that delivered measurable value, Volvo CE was able to bring local needs to define the global picture. Learn how Volvo CE was able to address engineering challenges.
Change management is extremely difficult across an organization. It’s achieved by developing the desire and will to shift to a long-term vision. Learn about how the team overcame siloed thinking with a different kind of leadership.

Additional PLM resources


How to Establish a BOM-Centric Approach

Read this whitepaper to learn ten ways to organize your data in order to become a digital leader.


The Seven Building Blocks to the Digital Thread

Get analyst insights into how to best build a solid foundation for the digital thread.


Digital Innovation With PTC

Our customers are accelerating digital transformation with technology solutions that enable their teams to always be innovating—every day. Explore stories from Polaris, Groupe Beneteau, and Whirlpool Corporation.

CAD engineer on computer