Succeeding in Supplier Development : A Qualitative Case Study of Scania CV AB Suppliers

Abstract: Purpose To investigate under which conditions SCD’s work with implementing a lean mindset and behaviour at key suppliers is successful. To help fulfilling the purpose this thesis aims to answer the question: What affects how the production unit of a Scania key supplier adopts a lean mindset and behaviour with focus on continuous improvements? Methodology An exploratory multiple case study with a qualitative data analysis and inductive approach. The cases consist of five Swedish first-tier suppliers to Scania CV AB, and a pilot case study conducted at Scania, Södertälje. Result The case study resulted in a categorisation of suppliers into three groups based on their characteristics and ability to adopt a lean mindset and behaviour: Group I:  Lack of direction, inconsistent management culture, no deeper understanding or interest in lean, no involvement or responsibility of operators in improvement work, a tendency to copy tools and methods given by external help directly into the organisation. Group II:  Strong sense of direction, strong management culture, a personal interest in lean and improvements, an “us and them” culture between managers and operators, and a strong sense to develop tools and working methods in-house and be very restrictive with applying external thoughts in the organisation. Group III: Clear long-term direction; primarily evident among managers, clear targets on an operational level to guide the rest of the organisation, a supportive management culture, an expectation on operators to perform improvement work, and openness to external help but a strong sense of filtering and adapting to the own organisation. Conclusion Our conclusion is that SCD is variously successful due to that the same approach has been used despite different needs of the suppliers. The recommendation is to analyse suppliers with tools provided in this research and adapt the development approach to specific supplier needs: Group I: No prioritisation of long-term development of this group. Group II: Provide guiding from experience to management team, focus workshop on operators and their nearest contact points. Group III: Provide possible solutions to specific problems.