The viability of the Scandinavian work-life model and the impact of lean production: The case of Scania

Abstract

From the 1970s through the 1990s, Scandinavian work-life, especially in Sweden, was an international role model for work organization and industrial relations. Practices such as job enrichment, teamwork in semi-autonomous groups, multi-skilling, and long work cycles were commonplace. This article investigates if and how such practices, the Socio-Technical Systems model (STS), are still followed in Sweden after the arrival of lean production. The study was conducted at Scania, a Swedish heavy truck and bus manufacturer well-known for its innovative work organization and its previous use of a socio-technical work design. The study finds that as this production and management model has been substantially marginalized, a new model has emerged. The new model, inspired by the Toyota Production System and lean, is characterized by a line organization design, standardized work processes, daily control, all shorter cycle-times, permanent team leader positions, position ownership, and continuous improvement with rotation possibilities. This new model, Scania Production System (SPS), has enjoyed considerable success. Yet challenges remain with respect to employee commitment to work and their boredom with highly-paced, repetitive work, leading to an advocacy for more of a hybrid model between the SPS and the STS models. Although the study is performed in only one company it is an exemplar company in Sweden which has been highly influential also beyond the transportation industry. The article also expands the scientific knowledge of production systems by the help of a novel stakeholder model. The article’s contribution is its demonstration of current work organization practices and to what extent these represent continuity or new trajectories. Lean production has had a vigouous reception in Scania but there are problematic features that are distinct from a stakeholder model perspective.