Scania Annual Report 2011

Scania Annual Report 2011 Scania Annual Report 2011

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10 SCANIA’S STRATEGY up drivers in their day-to-day work in terms of safety, profitability, efficiency and the environment. Even today, Scania can make a big difference by offering its customers solutions that boost their profitability and reduce their environmental impact. Per Hallberg, Executive Vice President, Research and Development, Purchasing Martin Lundstedt: One example of this is our “green” solution, Ecolution by Scania, which was developed together with customers in Sweden. Ecolution by Scania is a package of products and services specially adapted to the needs of a given customer’s operations. Through vehicle optimisation, driver training and coaching and a specially adapted programme of regular maintenance, fuel consumption and thus carbon dioxide emissions can be reduced substantially. Climate impact can be reduced further by using renewable fuels. It also makes a major contribution to society, here and now. Even today, Scania can make a big difference by offering its customers solutions that boost their profitability and reduce their environmental impact. As a leading player in the transport sector, Scania has an important role in efforts to generate long-term value and contribute solutions to the challenges faced by society. Scania works actively to minimise both its resource consumption and the environ - mental impact of its products. Anders Nielsen: Scania’s environmental work is proactive and based on a life cycle perspective, from supplier to end-of-life treatment. First, of course, we have our own operations. We are constantly working to lower our use of energy and other resources. When we invest in new production capacity, we must use the best possible technology, but it is also a matter of being able to produce more vehicles per employee. By manufacturing more vehicles without increasing the area of our production units and the number of employees, we become more resource-efficient. Per Hallberg: Scania has an important role to play in reducing carbon dioxide emissions. We are thus working in a number of areas to reduce climate impact – for example through engine technology, aerodynamics and renewable fuels – and we are also improving our services, which has similar effects. In addition to our customers’ demands for low fuel consumption we also have our vision for 2020: that the carbon dioxide emissions related to completing a given transport task should be halved compared to the year 2000. Here the vehicle plays an important role, of course, but so does the driver. Our own haulage company, the Scania Transport Laboratory, enables us to evaluate vehicle properties and performance, but also test and practice the use of various driver support systems. The results are leading to new services that back Safe, efficient and easily accessible public transport helps reduce environmental impact, while enabling people to enjoy a more efficient everyday life. To a growing extent, Scania delivers buses to bus systems for which we also assume responsibility for all servicing. Martin Lundstedt: Many fast-growing cities have realised the advantages of building efficient bus systems that simplify people’s everyday lives and encourage a shift of passenger traffic from cars to buses. This will greatly reduce both congestion and environmental impact, which is true even if the buses run on fossil fuels. Bus systems are a good example of how the needs of our customers encompass more than vehicles alone. It is a matter of services, workshops, parts and so on. We have to make sure that together with operators and other players, we have the expertise related to these systems that enables us to provide a genuinely attractive solution for passengers. That will make public transport a genuinely important element of future urban development. Christian Levin: In many markets, we have an extensive service network. That is a clear advantage when we discuss bus system solutions. It is also of interest here that we can station our service technicians in the customer’s workshop or completely take care of the customer’s vehicle service needs. City bus traffic is highly demanding and wearing on vehicles, so the buses require access to service and parts round the clock. Martin Lundstedt: During 2011 we launched the new Scania Citywide bus series. These are city buses built entirely out of aluminium. The body sections are modularised so the buses can be adapted to the customer’s operations. Operations Scania 2011

SCANIA’S STRATEGY 11 The aluminium body saves weight, and the body panels are easy to repair. This reduces environmental impact and improves the bus company’s operating economy and vehicle uptime. A responsible, sustainable approach is part of Scania’s day-to-day work – both inside and outside the company. It is essential if the company is to be competitive in the long term. Anders Nielsen: At Scania, for two decades now, we have seen the positive effects on our employees when they assume greater responsibility for improving and boosting the efficiency of their own work. High healthy attendance and motivated employees are central elements of the Scania Production System and are essential for good growth. Christian Levin: And now we have embarked on the same journey in the sales and service organisation. We can see the results in many places. It is a matter of keeping in mind – right from the pre-production engineering stage – that a vehicle should be easy to service and maintain. This means less wear on our employees and it increases their efficiency, which is also good for our customers. Anders Nielsen: To further strengthen its sustainability work, during 2011 Scania established a cross-functional decision making forum for safety, health and environment, the SHE Council, which includes four members of the Executive Board. This new structure will enable us to achieve further progress and ensure that Scania is a sustainable organisation, by means of consensus and a coordinated approach in all our areas of operation. We have a major challenge ahead of us, for example to persuade all our employees to think in terms of safety. During the year, we intensified our efforts, for example with regard to preparing and training new managers. Per Hallberg: Scania has a large number of suppliers. We know that ensuring good conditions for the employees in these companies goes hand in hand with good quality for our products and services. We make demands of our suppliers, both regarding environmental and working conditions. We work closely with them and back them up in various ways. Among other things, we offer training in our leadership model, with continuous improvements and evaluations according to Scania’s rating systems. Sustainable development is also a matter of monitoring and evaluating operations. Jan Ytterberg: A responsible approach to our economic, social and environmental impact includes actually following up the instructions that we give to our Anders Nielsen, Executive Vice President, Production and Logistics managers. In this way, we can ensure that our operations are in line with our values. This follow-up includes monitoring health-related statistics and environmental factors, aside from the classic financial key figures. We are refining our Scania Blue Rating monitoring system and improving the quality of the data that we gather. We are also clarifying our internal management systems when it comes to corruption and anti-competitive behaviour issues. For many years, we have also monitored our sub-contractors from a quality and financial perspective. Here, too, we are broadening our cooperation. To enjoy the confidence of all our target groups, it is important for us to be transparent about the results of our work, not only our finances. Jan Ytterberg, Chief Financial Officer (CFO) The key is to work more efficiently, since efficiency and quality go hand in hand. To enjoy the confidence of all our target groups, it is important for us to be transparent about the results of our work, not only our finances. Operations Scania 2011

SCANIA’S STRATEGY<br />

11<br />

The aluminium body saves weight, and the body panels<br />

are easy to repair. This reduces environmental impact<br />

and improves the bus company’s operating economy<br />

and vehicle uptime.<br />

A responsible, sustainable approach is part<br />

of <strong>Scania</strong>’s day-to-day work – both inside and<br />

outside the company. It is essential if the company<br />

is to be competitive in the long term.<br />

Anders Nielsen: At <strong>Scania</strong>, for two decades now, we<br />

have seen the positive effects on our employees when<br />

they assume greater responsibility for improving and<br />

boosting the efficiency of their own work. High healthy<br />

attendance and motivated employees are central<br />

elements of the <strong>Scania</strong> Production System and are<br />

essential for good growth.<br />

Christian Levin: And now we have embarked on the<br />

same journey in the sales and service organisation.<br />

We can see the results in many places. It is a matter<br />

of keeping in mind – right from the pre-production<br />

engineering stage – that a vehicle should be easy to<br />

service and maintain. This means less wear on our<br />

employees and it increases their efficiency, which is<br />

also good for our customers.<br />

Anders Nielsen: To further strengthen its sustainability<br />

work, during <strong>2011</strong> <strong>Scania</strong> established a cross-functional<br />

decision making forum for safety, health and environment,<br />

the SHE Council, which includes four members of<br />

the Executive Board. This new structure will enable us<br />

to achieve further progress and ensure that <strong>Scania</strong> is a<br />

sustainable organisation, by means of consensus and<br />

a coordinated approach in all our areas of operation.<br />

We have a major challenge ahead of us, for example to<br />

persuade all our employees to think in terms of safety.<br />

During the year, we intensified our efforts, for example<br />

with regard to preparing and training new managers.<br />

Per Hallberg: <strong>Scania</strong> has a large number of suppliers.<br />

We know that ensuring good conditions for the<br />

employees in these companies goes hand in hand with<br />

good quality for our products and services. We make<br />

demands of our suppliers, both regarding environmental<br />

and working conditions. We work closely with them and<br />

back them up in various ways. Among other things, we<br />

offer training in our leadership model, with continuous<br />

improvements and evaluations according to <strong>Scania</strong>’s<br />

rating systems.<br />

Sustainable development is also a matter of monitoring<br />

and evaluating operations.<br />

Jan Ytterberg: A responsible approach to our<br />

economic, social and environmental impact includes<br />

actually following up the instructions that we give to our<br />

Anders Nielsen, Executive Vice President,<br />

Production and Logistics<br />

managers. In this way, we can ensure that our operations<br />

are in line with our values. This follow-up includes<br />

monitoring health-related statistics and environmental<br />

factors, aside from the classic financial key figures. We<br />

are refining our <strong>Scania</strong> Blue Rating monitoring system<br />

and improving the quality of the data that we gather.<br />

We are also clarifying our internal management<br />

systems when it comes to corruption and anti-competitive<br />

behaviour issues. For many years, we have<br />

also monitored our sub-contractors from a quality and<br />

financial perspective. Here, too, we are broadening our<br />

cooperation.<br />

To enjoy the confidence of all our target groups, it is<br />

important for us to be transparent about the results of<br />

our work, not only our finances.<br />

Jan Ytterberg, Chief Financial Officer (CFO)<br />

The key is to work<br />

more efficiently, since<br />

efficiency and quality<br />

go hand in hand.<br />

To enjoy the confidence<br />

of all our<br />

target groups, it is<br />

important for us to<br />

be transparent about<br />

the results of our<br />

work, not only our<br />

finances.<br />

Operations <strong>Scania</strong> <strong>2011</strong>

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