Skf Ab Class A · OMXSTO:SKF_A
Skf Ab Class A — Investor Day (2014)
21 slides from Skf Ab Class A's investor day presentation, 2014
Slide 1: World Class Operations' programs
World Class Operations’ programs Cost • Integrated Cost Reduction (ICR) • Business Excellence (BE) Footprint Luc Graux • Fast growing markets Director, Manufacturing • Restructuring & Demand Chain Capital • Regional supplier base • Manufacturing flexibility © SKF Group CMD 2014
Slide 2: Cost
Direct material Cost Value added © SKF Group
Slide 3: Cost reduction direct material
Direct material Cost reduction direct material Continue implementation of Integrated Cost Reduction (ICR) 2 program Review • Supplier workshops technical solutions • Cost improvement activities 3 3 ICR levels 1 Review Optimize product sourcing specifications © SKF Group CMD 2014
Slide 4: ICR direct material savings
Direct material ICR direct material savings 800 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 Status Next steps • Program started in 2007 1) Implementation of current saving ideas • Replication to all product lines completed 2) Focus more on specification and design • Savings in line with plan 3)
Slide 5: Achievements – main projects
Direct material Achievements – main projects • Optimizing forging design to reduce weight Before After -20% on component cost • Launch new ABS sensors concept with new supplier -25% on component cost © SKF Group CMD 2014
Slide 6: Business Excellence (BE)
Value added Business Excellence (BE) Business Excellence for manufacturing © SKF Group CMD 2014
Slide 7: Driving Business Excellence
Value added Driving Business Excellence Building Spreading Intro BE Harvesting BE culture BE culture • Deployment process Business and focus areas Excellence for Transactional • Tools, methods and processes Factory Manager manufacturing standards Seminars 2008 2009 2010 2011 2012 2013 2014… • Benefi
Slide 8: Excellence contributes to result
Value added Excellence contributs to result (first 22 units) Waste reduction (SEKm) Waste reduction • Labour costs • Shop supplies • Maintenance and repairs 2013 YTD July 2014 Target 2014 • Non-quality costs YTD savings doubled vs 2013 Inventory coverage – Delivery performance % of sales 2013 YTD Ju
Slide 9: Strengthen maintenance excellence and training
Value added Strengthen maintenance excellence and training Maintenance excellence: Learning center: a program to reduce unplanned a factory dedicated area for stops and improve hands-on training machine uptime Operational Learning centers started in fast growing markets 2013: 8 2014 : 14 2015: 21 Op
Slide 10: Footprint
Footprint © SKF Group
Slide 11: Expanding manufacturing in fast growing markets
Expanding manufacturing in fast growing markets Kalofer (Bulgaria) Jinan (China) Factory extension (2014) Green field (2012) Seals Truck bearings Shanghai ATCII (China) Mysore (India) Green field (2014) Green field (2012) Car wheel bearings Seals © SKF Group CMD 2014
Slide 12: On-going manufacturing restructuring
On-going manufacturing restructuring • Seals West-Europe: Transferring selected products from Italy to Bulgaria • France: Consolidate several manufacturing units into St Cyr site • USA: Consolidation of Franklin into Seneca, and closing Franklin • Brazil: Down-sizing operations and head office in li
Slide 13: Automotive footprint synchronization
Automotive footprint synchronization 2013 Sales Production Europe India China North America Latin America Further benefits of footprint adjustments 45 factories in 39 locations 1) Localization of supply in fast growing Flexibility - Faster response to customer markets + 50% since 2008 demands Curren
Slide 14: Capital
Capital © SKF Group
Slide 15: Flexible manufacturing
Flexible manufacturing Overview • New standardized manufacturing concept • Modular technology • Pilot project installations Benefits • Increased manufacturing flexibility to follow customer demand • Reduced operating cost and capital expenditure © SKF Group CMD 2014
Slide 16: Flexi process technology
Flexi process technology Right technology for each manufacturing set-up! Super flexi model Flexi model High volume model Cost Volume © SKF Group CMD 2014
Slide 17: Super flexible technology
Super flexible technology • Alternative to conventional machining • Resetting time: 1/10 • Tooling cost: 1/10 Achievements • > 1 million bearings produced © SKF Group CMD 2014
Slide 18: Capital efficiency
Capital efficiency Factory model standardization Machine standardization Inventory reduction model • Supplier program • Manufacturing flexibility © SKF Group CMD 2014
Slide 19: Robust supplier base
Robust supplier base Build strategic supplier relationships and Strategic a high performing supplier base suppliers © SKF Group CMD 2014
Slide 20: Optimizing cost with a robust supplier base
Optimizing cost with a robust supplier base Europe Global • Build East Europe supply base • Supply base consolidation • Dual sourcing policy Asia • Strategic partnership with key • Strengthen supply base in Asia suppliers (India, China) • Supplier localization • Lead-time and delivery North and Lati
Slide 21: Key directions
Key directions Safety first • A safe working environment in our factories Quality and Business Excellence • Quality Management System • Business Excellence for Manufacturing One SKF in Purchasing • Robust supplier base and regional supply • Continuous cost reductions through ICR Technology Strategy