SCANIA CASE STUDY

Scania Case Study

Scania Case Study

Introduction and Background

The company is a Swedish-owned heavy truck assembly plant, located in France. The case describes the complex processes involved in the complex, multicultural setting. When two countries are involved in the manufacturing process, it creates cultural and other issues, which the two company needs to deal with. The case also considers some similarities, which the two countries France and Sweden have between each other. It also discusses the detail about the Angers plant (SAN) and the probability of success of the plant and its operations.

The company initiated its operations in 1911, when the “Maskinfabricks AB Scania” merged with a manufacturer of railway rolling stock “Vagnfabriks Aktiebolaget I Södertälje”. In 2007, the company generated revenue of over 84 million Swedish Krona and a profit of over 84 million (Dallery, Y., David, R., and Xie, X.L., 2004, pp. 280-283.).

Keeping in view the major changes taking place in the automotive industry, Scania AB planned to compete with the other firm globally. The company set a target of producing approximately 150,000 by 2015. The company based on its three core values including customer being first, along with respect for the individual and quality of vehicles. The case discussed the issues, and problems related to a plant known as Angers France, which adopted a cluster approach during the 1990s. In the 1990s, it also introduced a new approach towards the business and formalized a novel strategy. It revised its mission to offer wider transport solutions with a customer friendly service, by building profitable relationship with agents and dealers. This is part of the company's policy and values to compete with other players of the industry and competitors all over the world (De Vin, L.J., 1988, pp. 156-163).

Discussion

Angers plant is a huge asset for the company, as it assembles trucks for French, Iberian and Italian markets. The plant covers an area of 50,000 square meters. When the plant was introduced in 1992, it showed clear signs of development, as the output significantly increased from the time, when operations started for the company. In 1994, company produced 7 trucks a day, while the number increased to 30 trucks in a day in 1995. The company was able to achieve constant growth and the number of trucks produced in a day increased to 50 trucks in a day, in 2005.

Cluster team

The company relies on team work for all aspects of organizational life. Socialization and training is a norm in the company. The management of the company terms team work as a very significant motivational tool.

The company uses cluster team formats for completion their processes and projects. These clusters are units of production made up of workers, who assemble components forming a semi-finished product. For example, one cluster is responsible for the construction of Engines, another is responsible for assembling cab and other responsible for construction of brake system. The focus of the plant is cluster ...