Scania annual report 2003

THE PRODUCTION SYSTEM
The same working methods everywhere
The Scania Production System (SPS) is the basis of all production improvement
work. The values, principles and priorities that govern its working
methods are identical, regardless of whether production occurs in Europe,
Latin America or somewhere else in the world. New solutions developed by
an improvement team on the assembly line in São Paulo are introduced
systematically by colleagues at the production units in Zwolle, Angers and
Södertälje.
The Scania Production System has been
developed among the company’s own
employees at production units. Other
Scania operating units besides pure production
also apply the concepts behind
SPS. Scania’s research and development
departments are being streamlined
according to the same principles, and
next in line will be the global service network.
A growing number of Scania’s suppliers
are also applying this methodical
way of working.
SPS has contributed to the sharp improvement
in productivity at Scania in recent
years. In 1985, the company manufactured
1.6 trucks per production
employee yearly. During 2003, that figure
had climbed to 4.6.
The Scania Production System is based
on four main principles:
Standardised working method
To ensure that Scania’s products maintain
high and uniform quality, work processes
have been standardised and documented.
Tasks are performed in a specific way, at a
specific pace and with an even, balanced
flow throughout the production chain. In
SPS, this is called the “normal situation”.
Doing it right the first time
Since work takes place visually, with visible
buffers and process follow-up posted on
bulletin boards, what is normal and abnormal
becomes obvious. Direct feedback to
a person who caused a deviation allows it
to be remedied directly, helping to create a
quality-assured work process.
Consumption-controlled production
Scania’s customers decide how many
trucks, buses or engines will be manufactured.
It is also the customer’s order that
determines when production will begin.
This principle permeates the entire Scania
production chain, from the customer’s
order to the local sales company through
production and assembly through the final
product that is ready for delivery.
Continuous improvements
The overall objective of the Scania
Production System is to create continuous
improvements, where different production
units around the world can learn from
each other. By continuously discovering
and eliminating waste, the resulting liberated
resources can be applied to other productive
tasks.
More than 1,000 improvement teams
The most important success factor in the
Scania Production System is the work of
the various improvement teams. In
Scania’s global production system, there
are now more than 1,000 teams, in which
fitters and equipment operators implement
continuous improvements by contributing
their knowledge, professional skills and
capabilities to solving problems. Challenging
and improving the existing processes
is part of the daily work of these teams.
The goal is to find the easiest flow and the
easiest method for each situation in their
daily work. This has greatly increased
employee motivation and job dedication.
SPS Office has key coordinating
function
During 2003, Scania established an SPS Office
to back up and coordinate the continued introduction
of the Scania Production System
throughout the Group.
The SPS Office works from the Group’s
head office in Södertälje with the worldwide
Scania organisation. The office’s task is to help
bring about a uniform interpretation of the
system’s values and principles throughout
Scania. The SPS Office is also responsible for
disseminating knowledge and helping continuously
improve methods and tools, as well as
establishing a standardised SPS working
method. One important task is to transfer
knowledge and best practice between different
units.
Aside from Scania’s production units, the
office’s working area includes outside suppliers
and other departments at Scania.
The employees of the SPS Office have long
experience and wide-ranging expertise in
such areas as machining, assembly, production
engineering and procurement. This enables
them to deal with a variety of needs at Scania.
The back-up role of the SPS Office includes
everything from helping the organisation to
teach production principles to supporting the
introduction of these principles in concrete
improvement projects.
ANNUAL REPORT 2003 32