Production ramp-down strategy : Optimisation of production ramp-down at Scania Engine Assembly

Sammanfattning: In the light of the increasing demands and competition in the automotive industry to rapidly introduce new products to the market, management of production ramp-ups and production ramp-downs has become a new decisive competitive factor. For this reason, a well-designed strategy has become essential to succeed. For Scania Engine Assembly, this novel challenge is underway in the form of a ramp-down of the old assembly line (DL) and simultaneous ramp-up of the new assembly line (DW). This is to deliver the new and more sustainable engine platform Super. DL consists of a basic assembly and a final assembly (TMS-line), where the latter was the focus of this thesis project. Since the transition is already put in motion, there is an urgent need for the establishment of a production ramp-down strategy stretching until the complete transition. Therefore, this project was initiated to develop an optimal strategy of the production ramp-down with regard to interconnected projects and functions, as well as to the factors of economics, efficiency, ergonomics, and quality. The project also aimed to establish an ideal project progression regarding the management and implementation of the strategy. Considering that the TMS-line involves 59 workstations, more than 200 personnel daily, 10 engine types with unique variants, different technical systems, and must align with multiple operational functions, a comprehensive and considered strategy was essential. An additional objective was to reduce the gap in research between production ramp-up and production ramp-down. Although, the interest of production ramp-up has increased considerably in the last two decades, that of production ramp-down still remains widely neglected, despite their similar importance. Hence, the project aimed not only to contribute to Scania, but also to contribute with empirical data to future research in production ramp-down. Altogether, the reduction in the research gap can contribute to more sustainable production systems. To achieve the project objective and aims, a substantial literature review was conducted and a wide array of scientific methods were used. The literature review established a basis for the project, and brought theories from multiple languages and standpoints together to culminate in a comprehensive understanding of production ramp-down. The scientific methods were used to gather empirical data and to design the strategy. In addition, relevant expertise was incorporated throughout the project by a continuous cooperation with Scania employees of different roles and specialisations. The project also followed Scania’s change process to facilitate the realisation of the strategy. In total, three distinctive strategy concepts were generated and evaluated, called Alpha, Beta, and Gamma. Then, after a systematic evaluation process, a combination of Alpha and Gamma was designed in detail to form the final strategy. The strategy can be described as a stepwise capacity reduction. The first step is the planning and preparation for the necessary competence shift, organisational changes, and technical solutions. In the second step, a new takt and work standard corresponding to 50% capacity is implemented. Also, a decision regarding the final production years is made to either offshore production, change layout, or continue without change. The third step involves major structural changes in the form of a new organisational structure and the implementation of a technical solution for a permanent 50% capacity reduction. Similarly, in the fourth step, the technical solution is adjusted and a new work standard is implemented to correspond to a 33% capacity need. The fifth step regards the phase-out of the TMS-line, which completes the transition between DL and DW. Finally, the sixth step includes the revitalisation of the freed-up operational area and recycling of production equipment and materials. Altogether, the strategy ensures an optimal production ramp-down of the TMS-line with regard to interconnected projects, functions, and factors. To ensure the success of the strategy, recommendations in management and implementation of the strategy were established based on research and empirical findings. The result is an optimal strategy that fulfils the objective and aims, and contributes with new empirical findings and recommendations for future research in production ramp-down and connected research fields.