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 itits 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 focused on result High employee
No
N common way and inspection turnover
of working
 Background

1980 1995

Production Leadership Personnel

Flexible production Leadership High absence
systems focused on result High employee
Hard to detect waste Unclear priorities turnover
 Background

1996 2010

Production Leadership
p Personnel
Standardised Coaching with Empowered personnel
processes focus on Lower absence
Visualized waste working
g methods Lower employee
Method improvement Clear priorities turnover
by operators
 Continuous Improvement

2010 -

SPS a journey that has no end

1996
SPS
Leadership
L d hi
Involvement
Principles
Improvement teams
1990 1995 Motivation
Methods

1980 P-90 / P2000

Modular system
 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 Industrial

Mtrl.
Mtrl
Control Eng.
0
Production process
with integrated
0
maintenance & 85
logistics 95
SHE HR Finance @ cost

15
 Integrated Maintenance

TPM Methods

Production

Production
Maintenance
Maintenance

Info Class Confidential P/PHG/P&L Strategy 2014+

16
2013-11-11
 SHE Methods

Risk Management & Scania Ergonomic Energy

Safety Behaviour Standard Efficiency

Info Class Confidential P/PHG/P&L Strategy 2014+

17
2013-11-11
 Training

Trainingg trainers and managers

g Securing g transfer of learning
g
in awareness, ability to practice into on line application
SPS in own organization, ability
to train and lead others
 Small Teams & Present Leadership
Before 2012 After 2012
Large
g groups
g p Deeper
p competence
p
Large work content Fewer positions
Small focus on our deviations Ownership
Lack of present leaders Organized to work according
to standard

S/V

S/V

Team Team Team Team

leader leader leader leader
PS PS

Andon Andon
Real Time Management - RTM
Standardized Work

Focus on training
Problem Solving
 Continuous improvement
p

SPS a journey that has no end

Small teams Basic Skills & Quality Gates
RTM Integrated maintenance
1996- SHE Methods Logistics methods

SPS
Leadership
L d hi
Involvement
Principles
Improvement teams
1990-95 Motivation
Methods

1980 P-90 / P2000

Modular system

23
 Health attendance
100%

98%
96,7

95 6
95,6
96% 95,1

94%
93 0
93,0 93 0
93,0

92%
90,5
,

90%

88%
1990 1995 2000 2005 2010 2013 Q3

Info class Internal P Per Hallberg

2013-11-07
 Number of accidents with sick-leave
per one million worked hours
Global Production

45

40

35

30

25

20

15

10

0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Info class Internal P Per Hallberg

2013-11-07
 Global production
Environment responsibility

Energy
100000 consumption, MWh/vehicle 25
Veichles
90000
MWh/vehicle
80000 20
67700
70000
59360
60000 55600 15
46400
50000

40000 10
31800
30000

20000 5

10000

0 0
1990 1995 2000 2005 2010

Info class Internal P Per Hallberg

2013-11-07
 Product Quality (C
(C+M)
M)
Quality Audit results, average
Deviations

2009
2010
2011
2012
2013

Truck Cab Axles Gearbox Engine

Info class Internal P Per Hallberg

2013-11-07
Productivity improvement

140000 10
Vehicles
Employees
9
120000 Productivity

8
7,4
100000 7
6,6 92 800

5,5 6
80000
48
4,8 67 700 5
59 360
60000 55 600
3,5 4
46 400

40000 27
2,7 3
31 800

2
20000
12 000 13 100 12 500
11 600 10 700 10 300 1

0 0
1990 1995 2000 2005 2010 2013Q3

Info class Internal P Per Hallberg

2013-11-07
OPE improvements machining factories

80
76
70
70
60
60
50
50 45
40
40

30

20

10

0
1990 1995 2000 2005 2010 2013 Q3

Info class Internal P Per Hallberg

2013-11-07
 Production cost

Production cost (KSEK) per vehicle

250

200

150

100

50

0
1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Industrial Control

Info class Internal P Per Hallberg

2013-11-07
Small teams

Target Achievement
0 / 0 / 85 / 95
@ cost
 Leadership

WHAT HOW

WANT TO
Involved
Competent
Secure

Coaching
Business excellence through leadership
Challenge feed
motivated employees
back / recognition
 The journey continues
Evolution steps
not
Revolution steps

SPS nextt steps

t (2010)
Small teams Basic Skills
RTM Training and support
SPS = The Total Business Problem solving Integrated maintenance

S S (1996)
SPS ( )
Improvement teams Involvement
Motivation Leadership

P2000 (1995)
P90 (1990)
Modular system (1980)
Thank you
 SPS Development Forums 35

D
M
O
P&L Common PRU Managers
Development Group TD
TH
TE
H
Q
IF Metall

Assembly Machining Logistics

Development Group Development Group Development Group

M D O
PRU Managers Assembly PRU Managers Machining Logistics Managers
TD, TE TD, TE TD, TE

DP1 DP2 DP3 DP4

Develop Global
Master Global
Pilot Standard Global
Preparation process Training &
(Verification) & Implementation
Workshops
Training Content

Info Class Confidential P/PHG/P&L Strategy 2014+

2013-11-11
 Getting Started

7.Initial- 8.Potentiella
rengring fel

6.Maskin UFO/FU
gare
5.Ta hand om Initial
Rengring
4.Strnings strningar Resurs och
uppflj Mottgrder
Kompetens -
matris
3.RTM mot
Kllan till
2.Nrvaro PL Utrustnings -
Problem

>85% Produktivitets historik Kortinervalls -

kontroll
1.< 5
1. 5+1
1 Uppfljning Reservdels -
Daglig listor
Underhlls -
rapportering Nyckeltal
Fr Vecko-
Nyckeltal fr Tillfrlitlighet planering
Underhll Daglig
Planering
Kostnads -
0 Nulge
0. kontroll &
Uppfljning
Veckovis
Underhlls -
Anlggnings - rapportering
register

Arbetsorder -
System
Kritisk
Maskin
Maskin-
utrustning

Info class Internal QT/Magnus

Ordning Rylander
36 och reda p
Arbetsplatsen
20130701
 Logistics: Three loop system

Logistics Scania
Suppliers 3 2 1
C t
Centres PRU

Sequencing

ods reception/storing
Unit supply
NILE
Repacking

Low value
Platforms Trains
Kitting
Goo

Packaging breakdown
Platforms

Info Class Confidential P/PHG/P&L Strategy 2014+

37
2013-11-11
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

Safety, Health &

HR
Maintenance Environment

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: Manufacturing Output:

Sales Department
- R&D due to
- Purchasing takt time
- Planning
- Marketing
- Etc.
 Maskingaren i Processkunskap Maskinkunskap

Kra rtt
centrum Produktkunskap Q- Kontroller Riggning

5S
Metod
5S
Topp 3 strningar
CT - r
& br
b
Verktygsbyten
PUS 5S
Maskin 5S

MASKINGARE
Pgende ordrar & 5S
planerade jobb

5S

5S

Initialrengring
UFO- Utfra och driva 5S 5S
uppdateringar tillsammans Frdjupa
med PS 5S kunskapen
UH FU - Kommande insatser och Vgen mot sjlvstndigt
utfallet av fregende Operatrsunderhll enligt
Rengring -skra kvalitet p trappan
produkten och livslngd p
maskinen.

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 More than 1,600 sales and service points

Captive
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 Q F/C Operation

Plant
Manager

HR Q F/C Operation

Plant
Manager

HR Q F/C Operation
 Method development
SPS next steps (D & M inputs)

Integrated Training &

Small Teams
Maintenance Support
pp
SPS Development
Base Organization Asset number system
Process
RTM Critical equipment SPS Training Center
STD. Work (incl. 5S, 4-
Initial cleaning
step)
Scania Basic Skills KPI Performance

SHE Quality Logistics

Methods Methods Methods
Risk Management Quality gate Platform
Process
Load Ergonomics Containment Train SPS a journey that has no end
Performance Mgmt. Internal Supply Methods Small teams Basic Skills & Quality Gates
Packaging Selection
Capable Processes
Sheet RTM Integrated maintenance
Picking Quality 1996- SHE Methods Logistics Methods

SPS
Leadership
Involvement
Principles
Improvement teams
1990-95 Motivation
Methods

1980 P-90 / P2000

Modular system

54
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