The Scania Way
Martin Lyckström Head of Scania Way Office
1996
The Scania Way
The Scania House
Priorities
Dem
and-
driv
en o
utpu
t
Normal situation
Customer first Respect for the individual Quality
Continuous improvementsR
ight
from
me L
eadership
Sub-principles
The Scania Way
The Scania Way
• Our core values describes our way of living within the company. • They are a mirror of our way of being since 1896 (bottom up).
Which means that they where not created 1996, only put into words within the Scania House.
• Our core values also highlights the importance of our Customer,
Employees and the Company, all combined.They must never be unbalanced, otherwise the system will not be successful.
• The purpose of the Scania house is to establish a common
company language. It describes the way we should express ourselves.
• The thinking model describes how the system is applied. • The box that surrounds the house, Leadership, is the mortar that
binds together the stones.
PrioritiesD
eman
d-dr
iven
out
put
Normal situation
Continuous improvements
Rig
ht fr
om m
e
Sub-principles
Our foundation
A way of thinking…
A way of doing things…
In order to reach desired resultsTop
EmployeesCustomer
Satisfaction
VolumeGrowth Profitability
Customer first Respect for the individual
Quality
A balance of values Priorities
Dem
and-
driv
en o
utpu
t
Normal situation
Customer first Respect for the individual Quality
Continuous improvements
Rig
ht fr
om m
e Leadership
Sub-principles
SPS (1996) • Improvement teams • Motivation
P2000 (1995)
Modular system (1945) P90 (1990)
• Involvement • Leadership
SRS (2005)
The Scania Way
• Principles • Methods
Priority1. Safety/Health/Environment2. Quality3. Delivery4. Cost
Con
sum
ptio
n co
ntro
lled
prod
uctio
n
Normal situation – Standardized work
Customer first Respect for the individual
Quality
Continuous improvements
Rig
ht fr
om m
e
Leadership
Standard Takt Leveled flow Balanced flow Visual Real time
The Scania House – Group wide concept R&D Way Office (2011/2016)
The Scania Way (2016)
Evolution step -
A journey without an end
HR Office (2015)
Scania Thinking model
The Scania Way
Documented success
The Scania Way
Respect for the individual
95
96,7
95,1
9393
90,5
90
91
92
93
94
95
96
97
98
1985 1990 1995 2000 2005 2010 2015 2020
Health attendance Global
The Scania Way
9
171820
27
39
05
1015202530354045
1985 1990 1995 2000 2005 2010 2015 2020
Number of accidents with sick-leave/million worked hours
Global
Respect for the individual
The Scania Way
6,56,7
5,54,8
3,52,7
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
1985 1990 1995 2000 2005 2010 2015 2020
Productivity Global
Customer First
The Scania Way
Quality
80,8
70
60
5045
40
0
10
20
30
40
50
60
70
80
90
1985 1990 1995 2000 2005 2010 2015 2020
OPE Global
The Scania Way
8,59,6510,6610,52
15,11
19,15
0
5
10
15
20
25
1985 1990 1995 2000 2005 2010 2015 2020
Environment responsibility MWh/Vehicle Global production
Customer First
The Scania Way
Quality 1,7
3,0
5,0
7,0
10,0
0
2
4
6
8
10
12
1990 1995 2000 2005 2010 2015 2020
Quality Claims/VehicleTrucks SEU
The Scania Way
Next step?
Target ROCE > 40%, EBIT >10%
How are we doing?
13
Balance sheets
Income statements
Profitability
CTR
Net sales
Total capital
Assets
Inventory (ITR)
Receivables (RTR)
Cash equivalents
Profit margin
EBIT Net sales
COGS
OPEX
Net sales
X
+
+
-
CTR = Total capital
Net sales
Profitability =
CTR x Profit margin
Profit margin = Net sales
EBIT
-
Key financial metrics
The Scania Way
Capital Employed
The Scania Way
The Scania Way
Scania Way Office
X - Corporate Management & Venture Business
Head of X Daniel Wedberg
Business Control, XK Peter Schultz
Project Office, XP Helene Sjöblom
Scania Way Office, XW
Martin Lyckström
Sustainable City Solutions, XY
Anders Grundströmer
Strategy and Business
Development, XX Eric Lund (acting)
HR Mona Filander
Assistant Annica Löfling
The Scania Way
Scania Way Office
Mission
Secure a Scania Group wide concept for Flow management, Culture and Leadership
Support the Digital transformation within Scania
Ensure that all parts of Scania focus on both flow efficiency and resource efficiency
Focus on end to end flow including the operation of Scania, our customer and customers customer
The Scania Way
How
Lead larger cross functional assignments Challenge and support Scania´s flow transformation on an overall level Development of methods and principles Coordinate cooperation with existing Offices Gradually add more components to “the Scania Way”
CONNECTED ELECTRIFIED AUTONOMOUS
The Scania Way
Existing offices
SWO
Steering group
Resource efficiency In more than 200 years, history of traditional industrial development has been based on the benefit / refining resources
(resource efficiency).
Focus on that one single resource (man or machine) is 100% utilized e.g. OPE and Workload Most often is the one working with resource efficiency not burdened for the waiting time (e.g. Hospital). It takes place outside the hospital. However, the society is burdened.
The Scania Way
Flow efficiency
Whenever there is a product for a customer, there is also a value stream (process). The challenge is to be able to see that flow.
Focus on the object in the flow so that it is adding value for the end Customer A company has the advantage that the waiting time (burden) takes place inside the company. Which makes the objective to work with flow efficiency even greater.
No Waiting
Working Working
Focus on the object in the flow so that it is adding value for the end Customer
Waiting WaitingWorking Working
Focus on that one single resource (man or machine) is 100% utilized e.g. OPE and Workload
Thank you
The Scania Way
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