KU Leuven guest lecture
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1 KU Leuven guest lecture The golden triangle Guest Paul Frigne, Atlas Copco May 14th 2014 Chair Professor Joos Vandewalle
2 me, in brief U Gent Von Karman Institute for Fluid Dynamics Switzerland R&D center Atlas Copco Airpower Wilrijk Atlas Copco Belgium & Netherlands Atlas Copco France Atlas Copco Airtec division Pneurop - EU Affairs 2
3 Facts in brief Founded in 1873 in Stockholm The Atlas Copco Group Employees 39,800 Annual revenues BSEK 90,5 (BEUR 10,5) Operating margin 20.5 % These figures date from
4 Product Portfolio 4 A
5 Atlas Copco : facts in brief Founded in 1873 in Stockholm The Atlas Copco Group Atlas Copco Compressor Technique Employees 37,500 14,100 Gas compressors, expanders, cryogenic pumps Annual revenues BEUR 9 BEUR 3.5 Operating margin 21.6 % 23.9% Specialty rental These figures date from Compressed air equipment and solutions 5
6 Supporting a wide variety of industries Services & utilities Oil & gas Construction & mining Food & beverages Automotive & marine Process & manufacturing Chemical & petrochemical Electronics & semiconductor Textile Medical & healthcare Renewable energy Air separation 6
7 Belgium : Atlas Copco in a snapshot Atlas Copco employs people and realizes 18 % of the Group sales in Belgium Airpower Compressors Wilrijk Belux Customer Center Overijse Power Tools Distribution Hoeselt Airpower Construction Wilrijk AC Finance Belgium AC Finance Europe AC ASAP Europe International Distribution Wilrijk Rental Europe Rumst 7
8 Airpower in Antwerpen : HQ of Compressor Technique Arpic Works acquired in 1956 All production & research of compressors moved to Belgium 130,000 square meters Most advanced R&D-center Revenues m in employees (FTE) : 1358 BC & 1264 WC 661 engineers 374 R&D engineers 40 nationalities employed 8
9 9 Being an engineer
10 Divisional O & O structure Divisions Airpower Airtec Industrial Air Oil-free Air Quality Air Portable Energy Service Rental Division Finance & Administration Human Resources Engineering Production Process Purchasing Production Marketing O & O >>> Current Production >>> 10
11 Product Development Process Feasibility Func. Proto Prod. Proto PiBa Follow-up Start GATE GATE GATE GATE Close Customer Spec's Sign off master spec Customer approval Product CONCEPT design Master Spec X107 Procure / Assy / Test X616 (95% OK) Procure 1616 Prel. Final Assy / Test APC APC X107 - BOM DN's DN's PROVEN TECHNOLOGY Design frozen Design frozen Process CONCEPT process RED BOOK Approved Invest. application Pre-acceptance All tooling tested Acceptance Run + Pre-Q Final Qualification Purchase A-suppliers B+ B C+ All suppliers defined defined suppliers defined Order tooling & proto Order PiBa + Qualification Finance Feasibility Study Opening form 11 Project Opening Form & Budget Capitalisation D & D costs Start depreciation Close project
12 Being a PhD Validate for compressors 12
13 13 Basic Development
14 Example : high-speed direct-drive turbo
15 FWO 85th Anniversary 15
16 Why are we in Belgium? it s our history : Arpic works fully integrated set-up : a crown jewel in Belgian Industry innovation is our driving force Create Value Cut Cost the University of Compressed Air 16
17 The golden triangle Innovation Competitivity Production No innovation without production No production without competitivity 17
18 What is good in Belgium? Competence Universities : Leuven, Gent, Brussel, Luik Techno Centers : Sirris, FMTC, VITO, IWT, FWO Financial know-how : Financial HQ moved to Belgium the centre of Western Europe dynamic layer of SME close to Business Partners Society Incentives multilingual, social, cultural society stable relation with social partners Incentive for R&D engineers Support for training & IP 18
19 What is challenging in Belgium? Wages 19
20 What is challenging in Belgium? Wages Salaries 20
21 What is challenging in Belgium? Wages Salaries Acquired rights Index Bridge pension 21
22 What is challenging in Belgium? Political stability BE 541 days to arrive Stability EU & euro 22
23 What is challenging in Belgium? Political stability BE 541 days to arrive Stability EU & euro Legislation EU 23
24 How to create value? know your competitor Benchmark China : be there! Glocalization : local to global add features & extend the offer Energy requirements Environmental footprint Connectivity make differentiated value propositions 24
25 How to cut costs? gear up for product variability Production Before rethink manufacturing processes get lean! achieve 100% delivery performance After 25
26 How to cut costs? Production gear up for product variability rethink manufacturing processes get lean! achieve 100% delivery performance Products keep product core knowledge outsource non-core competences reduce time-to-market Gecia 26
27 GECIA Competences COMPETENCES MECHANICAL DESIGN CAE SYSTEM DESIGN TECHNICAL LITRATURE SOFTWARE DEVELOPMENT DOCUMENTATION Designing GBP Upload Data entry Microsoft.Net Lotus Notes C / Linux Animation AIB System Diagram ASL Assembly Instructions Customized Instrumentation & Controls P&I 's Electricals - Cubicles / Single line Diagram PLC Program FEA CFD CASTING / MACHINING SHEET METAL H. FAB & PIPING Packaging HOSES & FLEX SPECIALS Cooling System PLASTICS Tooling 27
28 28 Most interesting is what I did not say but you will ask
29 29
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