Scania - Annual Report 2006

Scania annual report 2006 24 PRO DUCTION Production with a focus on continuous improvements To maintain strong, sustainable competitiveness and profitable growth, Scania must become 6-8 percent more efficient per year. The company achieves this through continuous improvements in production and streamlining of production structure. Scania has a globally integrated production network. Most components and parts, as well as working methods and quality and environmental standards, are the same at all production units. The Scania Production System (SPS) has been developed in-house by the company’s own employees. SPS includes principles and methods that lead to continuously ongoing improvement work. Common working methods are applied at all Scania production units around the world. Meanwhile ideas for improvements are continually encouraged and discussed. New solutions are being tested and evaluated all the time, and improvements introduced at one unit are disseminated systematically to the other units in the global production network. The modular product system Scania’s production is based on a unique modular product system, which means that most vehicle and engine components may be elements of many different combinations. This, in turn, means that with a limited number of components, it is possible to achieve a large variety of vehicles. Because of the nearly unlimited potential combinations, customers can obtain vehicles that are designed in detail for the transport needs of their own business operations. Meanwhile the modular product system provides economies of scale in development, production and service. Shared components are increasingly being used in trucks, buses and industrial and marine engines. ASSEMBLY • Södertälje, Sweden • Angers, France • São Paulo, Brazil • Zwolle, the Netherlands CHASSIS ASSEMBLY • Södertälje, Sweden • São Paulo, Brazil BODYBUILDING • Slupsk, Poland • St. Petersburg, Russia CABS • Oskarshamn, Sweden • São Paulo, Brazil GEARBOXES • Sibbhult*, Södertälje, Sweden • Tucumán, Argentina ENGINES • Södertälje, Sweden • São Paulo, Brazil AXLES • Falun*, Sweden • São Paulo, Brazil FRAME MEMBERS • Luleå, Sweden SCANIA’S MODULAR Produc t SYSTEM TRUCKS MANUFACTURING BUSES AND COACHES INDUSTRIAL AND MARINE ENGINES * Will be moved to Södertälje during 2008. ASSEMBLY • Södertälje, Sweden • São Paulo, Brazil