Scania Annual Report 2011

38 production
Greater flexibility with new agreement
During the summer, Scania reached a new agreement
with the Swedish Metal Workers’ Union as part of the
company’s efforts to boost flexibility at its production
units in Sweden. The agreement regulates flexible
working hours and flexible staffing and is an important
element of Scania’s ability to respond to rapid changes
in demand. It also increases Scania’s chances of retaining
core competency at its Swedish production units in
the long term.
Under the new agreement, most flexible staffing will
consist of personnel from staffing companies. The share
of total production employees consisting of flexible staffing
will not exceed 30 percent.
Close collaboration with sub-contractors
Of Scania’s total production costs, about 70 percent
consist of purchased materials and components. Most
of Scania’s sub-contractors have had a long-term
relationship with the company. This allows for close
cooperation, where a supplier’s production is increasingly
integrated into Scania’s production network. This
has clear benefits for Scania’s customers by means of
higher product quality and reliability.
For example, such cooperation includes training in
the Scania Production System (SPS), help with improving
the efficiency of production equipment and logistics
as well as environmental work.
Scania is also expanding its cooperation with bodybuilding
companies that supply and assemble special
equipment on vehicles. Integrating bodybuilding companies
more closely into the chain leads to substantial
time savings for the customer from the order date until a
vehicle goes into operation and also broadens Scania’s
business.
Increase in capacity
While ensuring the flexibility to meet short-term fluctuations,
Scania has decided to raise its annual technical
production capacity, with the aim of reaching 120,000
vehicles from about 100,000 at present. Investments
to achieve a 120,000 vehicle capacity will total about
SEK 1.5 billion during a three-year period.
This increase is a step on the way towards reaching a
technical production capacity of 150,000 vehicles by the
next peak in the economic cycle. This can be achieved
with limited investments at the existing production units
due to the gains in efficiency that are continually being
achieved by working according to the Scania Production
System (SPS).
The largest investments in new capacity will occur
at engine and cab production units in both Europe and
Latin America.
New regional product centre
Scania’s strategy is to strengthen its position in key
emerging markets by establishing regional product
centres for assembling, bodyworking and fitting out
locally-adapted vehicles. Scania is thus moving the
factory gate closer to the customer, resulting in shorter
delivery times and a major improvement in customer
support. The task of opening a new facility in India has
begun.
Global healthy attendance
%
100
75
50
25
Antal producerade fordon per anställd
Number of vehicles produced per employee
Medarbetare – frisknärvaro globalt ENG
Vehicles
Employees
Vehicles produced
per employee
78,300 80,400 84,000
Production Sales and services
units
operations
6.8
67,700
7.2
96.3 96.3 97.2 97.5
55,600 6.6
6.6
31,800
3.0
46,400
3.5
4.8
3.8
35,800
12,000 13,100 11,600 11,800 11,800 9,500 10,300 11,700
Number of employees*, 2011
Södertälje 10,640
São Paulo 3,527
Oskarshamn 1,690
Zwolle 1,460
Słupsk 706
Angers 590
Luleå 585
Tucumán 568
0
10
11
10
11
90 95 00 07 08 09 10 11
Global healthy attendance
among employees at Scania’s
production units remained at
the same level as in 2010.
In 2011, productivity reached its highest-ever level. This was a result
of Scania’s day-to-day efforts to achieve continuous improvements,
thereby also eliminating waste of time and materials as well as environ -
mental waste. Vehicle production reached its highest-ever level, with
84,000 units produced during the year.
* Refers to the total number
of employees at Scania’s
production sites.
Report of the directors Scania 2011