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
Scania s Philosophy
Scania s Core Values Customer First Respect for the individual Quality Scania s core values permeate its entire corporate culture and 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.
Scania Production System
Background 1980 Production Leadership Personnel Instructions from engineers No common way of working Leadership focused on result and inspection High absence High employee turnover
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 Personnel Standardised processes Visualized waste Method improvement by operators Coaching with focus on working methods Clear priorities Empowered personnel Lower absence Lower employee turnover
Continuous Improvement 2010-1996 SPS a journey that has no end 1990 1995 1980 P-90 / P2000 Modular system SPS Involvement Improvement teams Motivation Leadership Principles Methods
Focus on process results From functional excellence to process excellence Tool Production target Engineer Quality Assurance Production Maintenance
SPS Development Standardised methods & common targets Prod. & SPS Industrial Mtrl. Control SHE HR Eng. Finance Production process with integrated maintenance & logistics 0 0 85 95 @ cost 15
Integrated Maintenance TPM Methods Production Maintenance Production Maintenance 16 Info Class Confidential P/PHG/P&L Strategy 2014+ 2013-11-11
SHE Methods Risk Management & Safety Behaviour Scania Ergonomic Standard Energy Efficiency 17 Info Class Confidential P/PHG/P&L Strategy 2014+ 2013-11-11
Training Training trainers and managers Securing transfer of learning in awareness, ability to practice SPS in own organization, ability to train and lead others into on line application
Small Teams & Present Leadership Before 2012 Large groups Large work content Small focus on our deviations Lack of present leaders After 2012 Deeper competence Fewer positions Ownership Organized to work according to standard S/V S/V PS PS Team leader Team leader Team leader Team leader Andon Andon
Real Time Management - RTM
Standardized Work Focus on training
Problem Solving
Continuous improvement 1980 1990-95 Modular system P-90 / P2000 1996- SPS Involvement Improvement teams Motivation SPS a journey that has no end Small teams RTM SHE Methods Basic Skills & Quality Gates Integrated maintenance Logistics methods Leadership Principles Methods 23
Health attendance 100% 98% 96,7 96% 95,1 95,6 94% 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 5 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 30000 20000 10000 0 31800 1990 1995 2000 2005 2010 10 5 0 Info class Internal P Per Hallberg 2013-11-07
Product Quality (C+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 140 000 120 000 Vehicles Employees Productivity 10 9 7,4 8 100 000 6,6 92 800 7 80 000 5,5 6 48 4,8 67 700 5 60 000 3,5 46 400 55 600 59 360 4 40 000 27 2,7 31 800 3 2 20 000 12 000 13 100 11 600 10 700 10 300 12 500 1 0 1990 1995 2000 2005 2010 2013 Q3 0 Info class Internal P Per Hallberg 2013-11-07
OPE improvements machining factories 80 70 60 50 40 40 45 50 60 70 76 30 20 10 0 1990 1995 2000 2005 2010 2013 Q3 Info class Internal P Per Hallberg 2013-11-07
Production cost 250 Production cost (KSEK) per vehicle 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 Business excellence through motivated employees Coaching leadership Challenge feed back / recognition
The journey continues Evolution steps not Revolution steps SPS = The Total Business P90 (1990) Modular system (1980) P2000 (1995) SPS S (1996) Improvement teams Motivation SPS next steps (2010) Small teams RTM Problem solving Involvement Leadership Basic Skills Training and support Integrated maintenance
Thank you
SPS Development Forums P&L Common Development Group D M O PRU Managers TD TH TE H Q IF Metall 35 Assembly Development Group Machining Development Group Logistics Development Group M PRU Managers Assembly TD, TE D PRU Managers Machining TD, TE O Logistics Managers TD, TE DP1 DP2 DP3 DP4 Preparation Pilot (Verification) Develop Global Standard & Training Content Master process Global Training & Workshops Global Implementation Info Class Confidential P/PHG/P&L Strategy 2014+ 2013-11-11
Getting Started 1.< 5+1 Nyckeltal för Underhåll 2.Närvaro PL >85% kontroll & 0. Nuläge Anläggnings - register Daglig Underhålls - rapportering Kostnads - Uppföljning 3.RTM Produktivitets Uppföljning Daglig Planering 4.Störnings uppfölj Utrustnings - historik Nyckeltal För Tillförlitlighet Veckovis Underhålls - rapportering 5.Ta hand om störningar Motåtgärder mot Källan till Problem Reservdels - listor 6.Maskin ägare Resurs och Kompetens - matris Kortinervalls - kontroll 7.Initialrengöring UFO/FU Veckoplanering Initial Rengöring 8.Potentiella fel Kritisk Maskin- utrustning Arbetsorder - System Info class Internal QT/Magnus Ordning Rylander 36 och reda på Arbetsplatsen 20130701
Logistics: Three loop system Logistics Scania Suppliers 3 2 1 Centres PRU Sequencing NILE toring Unit supply Goo ods reception/s Repacking Low value Kitting Platforms Trains Packaging breakdown Platforms 37 Info Class Confidential P/PHG/P&L Strategy 2014+ 2013-11-11
SPS a journey that has no end Scania Production System
Focus on process results From functional excellence to process excellence Tool Production target Engineer Quality Assurance Production Maintenance
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
Processkunskap Maskinkunskap Maskinägaren i Köra rätt centrum Produktkunskap Q- Kontroller Riggning C T - Är & bör Maskin Pågående ordrar & planerade jobb Topp 3 störningar PUS 5S 5S 5S MASKINÄGARE 5S 5S Metod Verktygsbyten 5S 5S Initialrengöring UFO- Utföra och driva uppdateringar tillsammans med PS UH Rengöring -säkra kvalitet på produkten och livslängd på maskinen. 5S FU - Kommande insatser och utfallet av föregående 5S 5S Fördjupa kunskapen Vägen mot självständigt Operatörsunderhåll enligt trappan Bygga kunskap genom ansvarskänsla, som på 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 customer s operations Deliver solutions The customer s operations are at the centre of the entire value chain
Respect for the individual Recognising and utilising all 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
SPS next steps (D & M inputs) Method development Small Teams Base Organization RTM STD. Work (incl. 5S, 4- step) Scania Basic Skills Integrated Maintenance Asset number system Critical equipment Initial cleaning KPI Performance Training & Support SPS Development Process SPS Training Center SHE Methods Quality Methods Logistics Methods Risk Management Process Load Ergonomics 1980 Quality gate Containment Performance Mgmt. Capable Processes Picking Quality 1990-95 Modular system P-90 / P2000 Platform Train Internal Supply Methods Packaging Selection Sheet 1996- SPS Involvement Improvement teams Motivation SPS a journey that has no end Small teams RTM SHE Methods Basic Skills & Quality Gates Integrated maintenance Logistics Methods Leadership Principles Methods 54
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