Leif Östling 1
2 Scania Customers Employees High quality products/services
3 Flow of activities Raw material/ semi-manufactured Production 1 2 3 4 5 Product ready for delivery Service Customer 1 2 3 4 5 Customer served
4 Leadership Traditional western Management Info Info Info Info Info Info Mental distance Work flow 1 2 3 4 5 Order giving management Ready for delivery
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6 Old leadership - before 1995 Production Leadership Employees Flexible production system Difficult to identify waste Leadership focusing on result Unclear priorities High absence High personnel turnover Management by result
7 Leadership Holistic Flow Management Teachers / Development of methods 1 2 3 4 5 Info Info Info Info Ready for delivery Teaching leadership - waste focus
8 Learning to see Waste - starts with accepting facts for what they are WASTE 70% NON VALUE ADDED But Necessary VALUE ADDED Examples of waste Waiting Unnecessary movement Storage Over production Unnecessary positions Transport Unutilised competence Scrap
9 Statio Lag eln Avd ing Typ i öser av sl dig Onö n empe ri ex Slöse Be döm var Borde a Utfall ning Understanding waste r <2gg l <2 rd Ja sad anda ialfa nsst sitio mater <3 r till nen ligt po tör gå statio tör, en mon e för r mon keln nger 80 cm erad tscy ner fö tal gå t plac teg sitio r arbe 1. An timal tspo 10s unde op be r s ar ne tal vänd aski m an 2. An l/m so äl 4,5 m g lst lina rkty ateria och ek er / ve 3. M sad 15s askin ialfa kel tal m tscy mater n be la 4. An Nej ar / d m el nen stån statio 5. Av etid Nej nter ngd eg på r vänt varia nslä ga st ge a io ån ik at m ol st 6. M r so Nej ellan ontö l inom lse ltid m /Vm ateria röre as i cyke 7. M lan H Sakn ut illnad r mel kin ta sl or sk m as cykle skall 8. St bets ande 1-4 tim kttid lla ar nger att ta tid ralle ej fu e de / ar på 9. Pa Vänte nt an 1 bing gl r vä krån ontö m rktyg ar på 10. M nt ve 3d r vä r och ontö don) kine k / An 11. M 0 se ) a mas ban vänd ndon (Kan (A an da O er lå 0 12. mm r en elnu tid fö tik ck ar ll per 0 13. Tä ialstä ngar er bi l at ta im Ja 14. An d yta ttjan ial n utny mater sade 0 15. O ing ing av erialfa pack flyttn i mat r. Up, om ndra 3 16 ng ge ra ni La ck vid va mpa n io r bred at la 17. O 3 st artik nen el på knde statio artik Li t. rt på ig 0 r 18 po färd ntrolle tera nen ko Trans io " on at M ga r st 19. nödi 0 ation ec fö a "o en st sp gd på la gg tion nter 20. In 0 på by para varia t xtinfo er re ånga kräv umen ler/ te Ja 21. M som mbo sdok m sy es le ob ånga t proc de pr enlig 22. M Nej an m vs m behö erko inte m 23. Åt er so gärd ering Åt. rd st te ing 24 Ju arbe anda ömn bbel ed ligt st b vs en Du r. ta 25 behö Total r arbe inte ontö r som 26. M bete fferta a bu gt ar di gg Onö 27. By ion dukt rpro Öve ömn l bed Tota r mer 3 elle r mer 3 elle ing: hx Δ oc = an rs ar fö ning märk till över X = ts å lage tgärd. slista 75%
10 Scania Production System 1996 Production Leadership Employees Standardised processes Visual waste Method improvement by operators Training focusing on working methods Clear priorities Empowered personnel Less absence Less personnel turnover
11 Core values Customer first Respect for the individual Quality / waste detection
12 / A way of thinking. A way of doing things. which leads to result
Scania lean production - focused on customer value
Scania lean production - focused on customer value
15 Leadership principles Co-ordinate but work independently take responsibility Work with details and understand the context Act now think long term Build know-how through continuous learning Stimulate commitment through involvement
16 Scania Production System Continuous improvement Right from me Consumption controlled production Normal situation standardised working method
17 Research and Development factory Mission: We develop trucks and associated products according to customer future needs
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19 Production and Procurement close to R&D Early involvement Cross-functional development Manufacturing Suppliers Södertälje Sweden Development line Verification of Product and Process Training Brazil Holland France
20 Linked flows - Scania suppliers Scania Supplier Scania Supplier
21 Flexible production cost structure Labour cost Operating Expenses Sourced material and components (70%)
22 Continuous improvement Using deviations to reach our goals Standardized working methods with takt is important Deviation solving methods Examples: Andon Daily Catch-up Improvement group Cross functional Q-team
23 Productivity improvements 15.0 10.0 Vehicle volume Personnel in production, direct and indirect 15 150,000 7 6.0 5.0 4.0 3.0 3 4 46,400 5 55,600 78,300 2.0 31,800 1.0 12,000 13,100 11,600 11,800 10,000 10,000 0 1990 1995 2000 2007 2010
24 Labour cost flexibility -2,800 9,900-21% -31% - Temporaries - Shifts - Bonus -Time Banks - 4 day week Number of employees Labour cost
25 % 97 Health attendance - Scania s Swedish units 96 95 94 93 92 91 90 89 88 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Business excellence through motivated employees 26