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Necessary but not sufficient

Thomas W. Schmidt, Head of Operational Excellence and IS, ABB Power Products Division. Necessary but not sufficient. PLM in context of Innovation Excellence. A global leader in power and automation technologies. Power and productivity for a better world TM.

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Necessary but not sufficient

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  1. Thomas W. Schmidt, Head of Operational Excellence and IS, ABB Power Products Division Necessary but not sufficient PLM in context of Innovation Excellence

  2. A global leader in power and automation technologies Power and productivity for a better worldTM • 135,000 employees in about 100 countries • $38 billion in revenue (2011) • Formed in 1988 merger of Swiss and Swedish engineering companies • Predecessors founded in 1883 and 1891 • Publicly owned company with head office in Switzerland

  3. How ABB is organized Five global divisions Power Products Power Systems Discrete Automation and Motion Low Voltage Products Process Automation $10.3 billion 35,000 employees $7.7 billion19,500 employees $8.4 billion27,500 employees $5.0 billion 21,000employees $7.8 billion28,500 employees (2011 revenues, consolidated) • ABB’s portfolio covers: • Motors and drives • Intelligent building systems • Robots and robot systems • Services to improve customers productivity and reliability • Electricals, automation, controls and instrumentation for power generation and industrial processes • Power transmission • Distribution solutions • Low-voltage products

  4. Consequences and challenges of a global presence The Local – Global Dilemma • High variety of standards (IEC, ANSI, GB, GOST, etc.) • High variety of customer specifics • Control & protection philosophy • Wiring schemas • Grid topology International Organizations Transnational Organizations Opportunities due to localization and specific added value Opportunities due to leveraged synergies Demand for global business approach/integration Low high Multinational Organizations (Old ABB) Low High Demand for market/country specific business approach

  5. Pre-requisite: Technology Platforms Example: Surge Arresters Arrester Class LOVOS POLIM PEXLIM PEXLINK AZ Housings Loop design Internal Design Common technology ZnO discs

  6. Pre-requisite: Portfolio Management / Focus Factory Example: MV Air Insulated Switchgear, Unigear DesignedbyOneteamof 27 engineers in 7 different countries … …sold in morethan 35 different markets Platformdevelopment Functionalityimplementation Phase in of global platform Productsubstitution Products Factories Parts 2001 18 80‘000 47 2002 10 45‘000 22 2003 1 5‘000 12 2004 1 5‘000 12 2005 1 5‘000 9

  7. Pre-requisite: Common Processes & Applications Manual update wastes time Collaboration not possible One set of data Updates of global design are visible Collaborative engineering possible TECHNOLOGY TRANSFER TC 1 LTC TC x Localadaptationvisible Global change management TECHNOLOGY TRANSFER Example: CommonPLM– Create, Collaborate & Control PLM TC 1 LTC TC x Yesterday Today

  8. Pre-requisite: Operational Excellence in All Functions Supply Chain Excellence Leverage Emerging Countries & Global Purchasing Power State of the art material management processes Simplicity Speed Quality Integrity Respect Determination Operational Excellence Common manufacturing processes per product line State of the art operational processes Sales Excellence Leverage entire product portfolio in all markets & channels Demand profitability by customer/channel/product line R & D Excellence Technology Leadership and Time to Market Sustainable product life cycle processes Management Excellence Finance Efficiency, Transparency and Compliance Leadership, Talented People, Health & Safety

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