Scania Production System

Stefan Palmgren, Senior Vice President, Powertrain Production

Provider of transport solutions

Products

Services

Financing

Heavy trucks

Workshops

Operational leases

Heavy buses

Service agreements

Financial leases

Engines

Parts

Hire purchase

Driver training

Insurance solutions

Scania Assistance

Premium products and services

Haulage

Construction

Distribution

Special purpose

Network and services

City and suburban

Intercity and coach

Used vehicles

Engines

Modular system

The world of Scania

Production units
Regional Product Centres
Sales and services untis

Production units
1891 Sweden
1957 Brazil
1964 Netherlands
1976 Argentina
1992 France
1993 Poland

Sales and services units

1,000 sales points

1,600 workshops
More than 95% parts availability
Round-the-clock assistance

Number of employees
41,000 persons

Global production system

Europe

Latin
America

Scanias Philosophy

Scanias Core Values

Customer First

Respect for the individual

Quality

Scanias
S
i core values
l
permeate
t it
its entire
ti corporate
t culture
lt
and
d
influence its day-to-day work. Customer first, Respect for the
individual and Quality are closely linked and apply in unity. They
constitute the starting point for all business development
development.

Scania Production System

Background
1980

Production

Leadership

Personnel

Instructions from

Leadership

High absence

engineers
No
N common way
of working

focused on result
and inspection

High employee

turnover

Background
1980 1995

Production

Leadership

Personnel

Flexible production

Leadership

High absence

systems
Hard to detect waste

focused on result
Unclear priorities

High employee

turnover

Background
1996 2010

Production

Leadership
p

Personnel

Standardised

Coaching with

Empowered personnel

processes
Visualized waste
Method improvement
by operators

focus on
working
g methods
Clear priorities

Lower absence
Lower employee

turnover

Continuous Improvement

2010 SPS a journey that has no end

1996
SPS
Involvement

1990 1995
1980

P-90 / P2000

Modular system

Improvement teams
Motivation

L d hi
Leadership
Principles
Methods

Focus on process results

From functional excellence to process excellence

Tool

Engineer
g
Production target

Quality
Assurance

M i t
Maintenance
Production

SPS Development
Standardised methods & common targets

Prod. &

SPS

Mtrl.
Mtrl
Control

Industrial
Eng.
Production process
with integrated
maintenance &
logistics

SHE

15

HR

Finance

0
0
85
95
@ cost

Integrated Maintenance
TPM Methods

Production
Production
Maintenance
Maintenance

16

Info Class Confidential

2013-11-11

P/PHG/P&L Strategy 2014+

SHE Methods

Risk Management &

Safety Behaviour

17

Info Class Confidential

2013-11-11

Scania Ergonomic
Standard

P/PHG/P&L Strategy 2014+

Energy
Efficiency

Training

Training
g trainers and managers
g
in awareness, ability to practice
SPS in own organization, ability
to train and lead others

Securing
g transfer of learning
g
into on line application

Small Teams & Present Leadership

Before 2012

After 2012

Large
g groups
g
p
Large work content
Small focus on our deviations
Lack of present leaders

Deeper
p competence
p
Fewer positions
Ownership
Organized to work according
to standard
S/V

S/V

PS

Andon

Andon

PS

Team
leader

Team
leader

Team
leader

Team
leader

Real Time Management - RTM

Standardized Work

Focus on training

Problem Solving

Continuous improvement
p

SPS a journey that has no end

1996-

Small teams Basic Skills & Quality Gates

Integrated maintenance
RTM
SHE Methods Logistics methods

SPS
Involvement

1990-95
1980

P-90 / P2000

Modular system

23

Improvement teams
Motivation

L d hi
Leadership
Principles
Methods

Health attendance
100%

98%
96,7
95 6
95,6

96%

95,1

94%

93 0
93,0

93 0
93,0

1995

2000

92%
90,5
,
90%

88%

Info class Internal

2013-11-07

P Per Hallberg

1990

2005

2010

2013 Q3

Number of accidents with sick-leave

per one million worked hours
Global Production
45
40
35
30
25
20
15
10
5
0
1990

1992

1994

Info class Internal

2013-11-07

1996

1998

P Per Hallberg

2000

2002

2004

2006

2008

2010

2012

Global production
Environment responsibility
Energy
consumption, MWh/vehicle
100000

25

Veichles

90000

MWh/vehicle
80000

20
67700

70000
59360

60000
46400

50000

15

55600

40000
30000

10
31800
5

20000
10000
0

1990

Info class Internal

2013-11-07

P Per Hallberg

1995

2000

2005

2010

Product Quality (C
(C+M)
M)
Quality Audit results, average
Deviations

2009
2010
2011
2012
2013

Truck

Cab

Info class Internal

2013-11-07

Axles

P Per Hallberg

Gearbox

Engine

Productivity improvement
140000

10

Vehicles
Employees
Productivity

120000

7,4
100000

6,6

92 800

48
4,8

7
6

5,5

80000

67 700

59 360

60000

55 600

3,5
46 400

40000

27
2,7
31 800

2
20000
12 000

13 100

11 600

10 700

10 300

12 500

0
1990

Info class Internal

2013-11-07

P Per Hallberg

1995

2000

2005

2010

2013Q3

OPE improvements machining factories

80

76
70

70

60
60

50
50

45
40

40
30
20
10
0
1990

Info class Internal

2013-11-07

P Per Hallberg

1995

2000

2005

2010

2013 Q3

Production cost
Production cost (KSEK) per vehicle

250

200

150

100

50

1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Industrial Control

Info class Internal

2013-11-07

P Per Hallberg

Small teams

Target Achievement
0 / 0 / 85 / 95
@ cost

Leadership
WHAT HOW

WANT TO
Involved
Competent
Secure

Business excellence through

motivated employees

Coaching
leadership
Challenge feed
back / recognition

The journey continues

Evolution steps
not
Revolution steps

SPS nextt steps

t
(2010)
Basic Skills
Small teams
Training and support
RTM
Problem solving Integrated maintenance

SPS = The Total Business

S S (1996)
SPS
(
)

Improvement teams
Motivation

P2000 (1995)
P90 (1990)
Modular system (1980)

Involvement
Leadership

Thank you

SPS Development Forums

D
M
O
PRU Managers
TD
TH
TE
H
Q
IF Metall

P&L Common
Development Group

Assembly
Development Group

Machining
Development Group

M
PRU Managers Assembly
TD, TE

Preparation

Logistics
Development Group

D
PRU Managers Machining
TD, TE

DP1

DP2

Pilot
(Verification)

Info Class Confidential

2013-11-11

O
Logistics Managers
TD, TE

DP3

Develop Global
Standard
&
Training Content

P/PHG/P&L Strategy 2014+

35

Master
process

DP4

Global
Training &
Workshops

Global
Implementation

Getting Started

5.Ta hand om
4.Strnings strningar
uppflj
Mottgrder
2.Nrvaro PL
>85%
1.< 5
1.
5+1
1

3.RTM
Produktivitets
Uppfljning

Daglig
Underhlls rapportering
Nyckeltal fr
Underhll

0 Nulge
0.

Daglig
Planering
Kostnads kontroll &
Uppfljning

Info class Internal

36

Arbetsorder System

Ordning
QT/Magnus
Rylander
och reda p
Arbetsplatsen

20130701

Initial
Rengring
Resurs och
Kompetens matris

mot
Kllan till
Problem
Kortinervalls kontroll
Reservdels listor

Nyckeltal
Fr
Tillfrlitlighet

Veckovis
Underhlls rapportering

Anlggnings register

Kritisk
Maskin
Maskinutrustning

Utrustnings historik

6.Maskin
gare

7.Initialrengring
UFO/FU

Veckoplanering

8.Potentiella
fel

Logistics: Three loop system

Suppliers

Logistics
C t
Centres

Scania
PRU

Goo
ods reception/storing

Sequencing

NILE

Unit supply
Repacking
Low value
Platforms

Trains

Kitting

Packaging breakdown
Platforms

37

Info Class Confidential

2013-11-11

P/PHG/P&L Strategy 2014+

SPS a journey that has no end

Scania Production System

Focus on process results

From functional excellence to process excellence

Tool

Engineer
g
Production target

Quality
Assurance

M i t
Maintenance
Production

Standard interfaces

Production
and material control

R&D + Purchasing

Production process

Maintenance

Safety, Health &

Environment

HR

All functions support stability

by ZERO defect focus

Cross-functional work throughout the value chain

Cross-functional work throughout the value chain

Production = The whole value chain

Alt 2

Input:
- R&D
- Purchasing
- Planning
- Marketing
- Etc.

Manufacturing
due to
takt time

Output:
Sales Department

Maskingaren i
centrum

Processkunskap

Kra rtt

Metod

5S

5S

Verktygsbyten

5S

PUS

Maskin

5S

Riggning

Q- Kontroller

Produktkunskap

Topp 3 strningar

CT - r
& br
b

Maskinkunskap

MASKINGARE

Pgende ordrar &

planerade jobb

5S

5S

5S
Initialrengring
UFO- Utfra och driva
uppdateringar tillsammans
med PS

UH
Rengring -skra kvalitet p
produkten och livslngd p
maskinen.

5S

5S
5S
FU - Kommande insatser och
utfallet av fregende

Frdjupa
kunskapen
Vgen mot sjlvstndigt
Operatrsunderhll enligt
trappan

Bygga kunskap genom ansvarsknsla,

ansvarsknsla som p 50-talet!?

Leadership Principle 1
Co-ordinate but work independently take responsibility

Leadership Principle 2
Work with the details and understand the context

Leadership Principle 3
Act now think long term

Leadership Principle 4
Build know-how through continuous learning

Leadership Principle 5
Stimulate commitment through involvement

Sales and service network

Non-captive
Captive

More than 1,600 sales and service points

globally 1,000 in Europe

Customer First

Good knowledge of

customers operations
Deliver solutions
The customers

operations are at the

centre of the entire value
chain

Respect for the individual

Recognising and

utilising all employees

employees
knowledge
Ideas and inspiration from

day-to-day operations

Quality

High quality solutions

Improvements are

triggered by
Customers needs
Deviations

Connected flows
Global Production/AFR
Central method development
Common IT systems

Plant
Manager

HR
Plant
Manager

HR

Plant
Manager

HR

F/C

Operation

F/C

Operation

F/C

Operation

Method development
SPS next steps (D & M inputs)
Integrated
Maintenance

Small Teams
Base Organization
RTM
STD. Work (incl. 5S, 4step)
Scania Basic Skills

Training &
Support
pp
SPS Development
Process
SPS Training Center

Asset number system

Critical equipment
Initial cleaning
KPI Performance

Logistics
Methods

Quality
Methods

SHE
Methods
Risk Management
Process
Load Ergonomics

Quality gate
Containment
Performance Mgmt.
Capable Processes
Picking Quality

Platform
Train
Internal Supply Methods
Packaging Selection
Sheet

1996-

SPS a journey that has no end

Small teams Basic Skills & Quality Gates
Integrated maintenance
RTM
SHE Methods Logistics Methods

SPS
Involvement

1990-95
1980

P-90 / P2000

Modular system
54

Improvement teams
Motivation

Leadership
Principles
Methods

55