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Low Cost Country Sourcing Example: China Fabrication Overview

Low Cost Country Sourcing Example: China Fabrication Overview. SANDVIK SMC P&S MATERIAL HANDLING. Vale-Nacala Project Meeting in Johannesburg Thusday, 7 th September 2010. Agenda China Sourcing Structure Sandvik Experience in China. China Sourcing Structure. SANDVIK SMC

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Low Cost Country Sourcing Example: China Fabrication Overview

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  1. Low Cost Country SourcingExample: China Fabrication Overview SANDVIK SMC P&S MATERIAL HANDLING Vale-Nacala Project Meeting in Johannesburg Thusday, 7th September 2010

  2. Agenda • China Sourcing Structure • Sandvik Experience in China

  3. China Sourcing Structure SANDVIK SMC P&S MATERIAL HANDLING

  4. SMC – Material Handling Projects Global Project Production Units Hollola Vancouver Leoben Shanghai Kolkatta Sao Paulo Joburg Perth Project Production Unit … PPU

  5. Global Procurement in LCC - Projects & SystemsOrganization Chart Strong Quality Assurance Focus

  6. Global Procurement in LCC - Projects & Systems Service Provider - Portfolio PPUs,TEC Sales support SMC Sourcing • Sourcing • Supplier research • Supplier qualification • Supplier presentation • Supplier developing • Maintain supplier pool • Contract negotiation • Enforcing standard • purchasing conditions • Tendering based on • PPU enquiry • Contract negotiations • Leading the negotiation • team Global Procurement Unit LCC • Planning and Coordination • Market research • Maintain global forecast • Global supplier database • Supplier recommendation • Forecasting • Cooperation with TEC • Cooperation with Sales • Centre of PPU demands • Contract administration • Technical coordination • Engineering clarification • Progress and quality • reporting • Coordination of as built • drawings • Coordination of final • documentation • Contract administration • Coordination of transport • Quality management • Enforcing SFM quality • and EHS standards • QA/QC management • Fabrication supervision • Assembling support • Coordination with TEC • Claim management • support

  7. Sandvik Mining and Construction Experience in China SANDVIK SMC P&S MATERIAL HANDLING

  8. Sandvik Mining and ConstructionSandvik P&Sactivities in China Sandvik gained experience from working in China for Projects and Systems for over 10 years Sandvik is running projects through a Project Execution Unit (PPU) in Shanghai Sandvik has established local production units that are producing different types of equipment already with local sourcing from China (drill rigs, crushers .....) Sandvik´s strategic target for project business - expanding the procurement in China through utilizing the local organisation through all Project Execution units globally Consequently increasing not only supply base but also manpower and organisation in China

  9. Sandvik Mining and ConstructionMobile Machine Fabricated in China Sandvik has fabricated 68mobile machines in China for the Chinese as well as international market.

  10. Sandvik Mining and ConstructionExamples of MH Equipment Built in China Barge Loader fabricated in China for the Australian Market (2010)

  11. Sandvik Mining and ConstructionExamples of MH Equipment Built in China Machines built by Sandvik in China, combination of imported key components and components procured locally with Chinese Sub-suppliers/Partners

  12. Sandvik Mining and ConstructionExamples of MH Equipment Built in China Machines built by Sandvik in China, combination of imported key components and components procured locally with Chinese Sub-suppliers/Partners

  13. Sandvik Mining and Construction Examples of MH Equipment Built in China

  14. Steel Fabrication Management and QA Team SANDVIK SMC P&S MATERIAL HANDLING

  15. Sandvik Mining and ConstructionSteel Fabrication Management and QA Team Example:Project inAustralia Project Manager PPU Australia • Organization (Procurement and QA) Sponsor Karsten B Fabrication Leader Willi Baumeister Expat Australia Support Team Based in China China Support Team Fabrication Site One Fabrication Site Two Manager Electrical Barrie Sutton China Project Manager Bill Qian Fabrication Expeditor 1 David L Fabrication Expeditor 2 Huiwei S Based inAustralia Elect supervisor Hans Gsell QA/QC Painting OEM paint insp Logistics Coordinator Haibin Huang QA/QC Site Manager 1 Willi B and assistant QA/QC Site Manager 2 Zimmermann T. Elect supervisor Damon Hill Document Controll Magic Li QA/QC Weld/Fab O’Brien Williams QA/QC Mechanical 1 Cy Hua QA/QC Mechanical 2 Walter W Based inChina Sub Components QA/QC Yongming Wen QA/QC Weld Bernie Solner QA/QC Welding 1 Graham L QA/QC Welding 2 Song Liu Pre erection Johann Leitner QA/QC Painting Australian QA/QC Painting Australian

  16. Proposed 3rd Party Services for Mechanical Testing SANDVIK SMC P&S MATERIAL HANDLING

  17. Sandvik Mining and ConstructionProposed “Third Parties” • SGS China • Bureau Veritas • Norse Inspection

  18. Sandvik Mining and ConstructionThird party inspection - Scope of work • Destructive testing • Tensile test • Impact test • Chemical composition analysis • Microstructure • NDT Testing • UT and MT testing of critical welds • UT and MT of cast parts and forged parts • Survey of main components • Dimensional checks • Survey of connection points

  19. Sandvik Mining and ConstructionSGS China

  20. Sandvik Mining and ConstructionBureau Veritas

  21. Sandvik Mining and ConstructionNorse Inspection • Norse Inspection is a third party company with a site office complex at TZME´s main workshop ! • All NDT - testing can be carried out by this company. • Destructive testing in cooperation with test laboratories in Tianjin

  22. Safety First

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