Scania annual report 2003

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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
33 ANNUAL REPORT 2003
Page 1 and 2: ANNUAL REPORT 2003
Page 3 and 4: NOMINEE SHARES To be entitled to pa
Page 5 and 6: Deliveries by market area, 2003 THE
Page 7: Road safety conference in Brussels.
Page 10 and 11: STATEMENT OF THE PRESIDENT AND CEO
Page 12 and 13: THE WORK OF THE BOARD The Board and
Page 14 and 15: GOALS AND STRATEGIES Strategy for p
Page 16 and 17: EMPLOYEES Scania grows with its emp
Page 18 and 19: SCANIA’S ROLE IN SOCIETY Long-ter
Page 20 and 21: CUSTOMERS Customer demands shape ne
Page 22 and 23: CUTOMERS AND PRODUCTS Tailor-made v
Page 24 and 25: CUSTOMERS AND SERVICE Maximum uptim
Page 26 and 27: RESEARCH AND DEVELOPMENT The art of
Page 28 and 29: DEVELOPMENT OF TESTING METHODS Incr
Page 30 and 31: DEVELOPMENT OF A NEW TRUCK A truck
Page 32 and 33: PRODUCTION Investments for increase
Page 36 and 37: TRENDS AND INDUSTRY DEVELOPMENTS Ec
Page 38 and 39: EUROPE Strong sales in several mark
Page 40 and 41: Deliveries of Scania trucks in west
Page 42 and 43: OTHER MARKETS Record sales in sever
Page 44 and 45: REGISTRATIONS OF TRUCKS above 16 to
Page 46 and 47: ENVIRONMENTAL WORK Integrated envir
Page 48 and 49: ENVIRONMENT AND ECONOMICS Scania’
Page 50 and 51: SCANIA SHARE DATA Continued low tra
Page 52 and 53: FINANCIAL REPORT Financial review R
Page 54 and 55: Interest rate risk Scania’s polic
Page 56 and 57: Consolidated balance sheet 31 Decem
Page 58 and 59: Parent Company financial statements
Page 60 and 61: value, the recoverable amount of th
Page 62 and 63: NOTE 1 Segment reporting BUSINESS S
Page 64 and 65: Note 4, continued Financial receiva
Page 66 and 67: NOTE 9 Tangible fixed assets Machin
Page 68 and 69: NOTE 17 Other provisions During 200
Page 70 and 71: NOTE 26 Wages, salaries and other r
Page 72 and 73: Note 28 continued The other members
Page 74 and 75: Note 33 continued Interest rate ref
Page 76 and 77: LIST OF SUBSIDIARIES Corporate ID n
Page 78 and 79: Notes - Parent Company All amounts
Page 80: Auditors’ report To the Annual Ge
Page 83 and 84: Key financial ratios 1 and definiti
Page 85 and 86:
2003 2002 2001 2000 1999 1998 1997
Page 87 and 88:
Leif Östling Born 1945. Member sin
Page 89 and 90:
Corporate Units 7. Håkan Ericsson
Page 91 and 92:
Scania Romania S.R.L. Alfred Bussma
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Scania annual report 2003

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