Managing Production deviations : A case study at Scania AB

Abstract: The use of continuous improvement programs is a widespread practice present in many organizations throughout the world. CI-programs are mostly associated with Lean production and substantial focus in literature and research are on the applicable tools and methods. This focus has led to the lack of attention to the softer areas of CI such as implementation. The reason explaining this might be due to the difficulties of measuring success in these areas. In order to investigate production deviations within a company that uses CI a study was performed at the bus chassis assembly at Scania. The deviation handling process and all activities related to it is highly influenced by Scania’s Production System. The studies were conducted at an assembly area with observations and interviews taking place as well as an internal benchmarking performed at the engine assembly. The conclusion is that the area studied at Scania has the tools and methods needed (although with the need of adjustments) but the implementation part is lacking. This area will come to play a big part in taking SPS one step further. As a recommendation to the area studied in Scania a group of suggestions has been presented in this paper in order to improve the implementation of SPS. The managerial contribution of this paper is a group of important suggestions. The theoretical contribution of this paper can be seen as a case study that could create an increase insight in the complexity of this topic but also to increase the attention to the importance of it.