Markante forbedringer ved flytning af produktion til Kina og en række nye organisatoriske ændringer med klare ansvarsområder

Transcription

1 Markante forbedringer ved flytning af produktion til Kina og en række nye organisatoriske ændringer med klare ansvarsområder Bjørn Strømboe Petersen, Senior Vice President, Global Operations, GN Resound A/S

2 Corporate Structure GN Store Nord Listed company Supervisory Board Executive mgmt.: 2 CEOs and 1 CFO GN ReSound Hearing instruments and audiologic diagnostics equipment Two businesses run as separate entities GN Netcom Contact center, office & UC headsets and mobile headsets 2

3 About GN ReSound A/S - The world s fourth biggest hearing instrument manufacturer - Revenue was DKK 3,896 million in Global market share approx. 16% in terms of units sold in Markets products under the ReSound, Beltone and Interton brands - Total workforce in GN ReSound and GN Otometrics was approximately 3,825 employees at the end of 2012 In the ear hearing instruments Behind the ear hearing instruments 3

4 Global management CEO & President Lars Viksmoen North America Todd Murray Global Marketing Gian Carlo Sciuchetti CFO Finance/ IT Anders Boyer Global HR Pia Møller Appel R&D /QA Peter Ulrik Scheel Global Operations Bjørn S. Petersen GN Otometrics Søren Holst APAC John Goltermann Lassen CIO Niels Keller Larsen Europe Carsten Buhl (Acting) Business Program Management Bo Ekelund 4

5 GN ReSound is closing the EBITA margin gap vs. competition EBITA (%) margin development 30 GNR WDH Sonova / Guidance Share price development 2013 Target The EBITA margin has been multiplied by 4 in 5 years The price of a GN ReSound share has increased by more than 1100% in 5 years 12 consecutive quarters with positive organic growth and above market growth 5

6 Facts about GN ReSound Global Operations Item Value Numberof operationssites sites 6 Number of employees 1,748 Number of SKU s Products Parts & component Number of BTE units per year gross sales Number of ITE units per year gross sales Number of order lines per year Number of shipments per year Gross inventory value (mill. DKK) 398 Gross inventory coverage in months 6,0 6

7 Operations levers to support the 20% EBITA margin Global freight tender Inventory reduction Warehouse optimization Strategic sourcing SKU reduction New packaging Organize around 5 processes Supply chain optimization Design to Value Off shoring of production from the US to China Consolidation of factories in the US (Back up factory in China) 7

8 Organize around 5 processes Physical entities ses Glob bal proces Global sourcing Global planning Global manufacturing Global distribution Global returns A P A C D K E S N A U K 5 global processes. Process owner decides across manufacturingand and distribution sites. Finance Christian Deichmann Global Operations Bjoern S. Petersen PMO Linda Lindberg HR Carsten W. Hollitsch Master Data Soeren Lillemose Management assistant Helle Thorup Global Supply Chain Thomas Lundstroem Global Manufacturing Ken Fay DK Operations Morten Andersen Global process owners Global Sourcing & Indirect Procurement - Peters Vuust Global Planning & NPI Thomas Lundstroem Global Distribution Kim Rønn Global Tech Ops. Johnny Hansen Process & materials Russ Schreiner Product Vince Maye CN Operations Ken Fay ES Operations Jose Moreno NA Operations Brian Tsuchiya Physical entities. Manufacturing & distribution Global Returns Ken Carl Nielsen Production optimization Mel Dastur UK Operations Salvatore Oppido

9 Supply chain optimization Supply chain as a competitive advantage S&OP KPI driven Performance management Transparency Governance 5 day turnaround on custom hearing aids manufcaturing in China Same day shipping from consolidated inventory locations Same day repair using SWAP concept Additional initiatives Global processes Continuous improvement Performance management 9

10 Design to Value. An integrated approach for improving products and margins by understanding customer value and cost drivers Skyfall idea capture 156 potential projects Commodity teams DfV Tear down workshop findings Exploration of Potential Projects Projects to execute selected Priority, contribution, schedule known Projects planned and ongoing Results having impact Timeline 10

11 Off shoring of production from the US to China Scope: Off shore 50% of production of custom products from US to China. Project started April 2012 Capacity in China increased by factor 3. Governance: Weekly meeting across China, DK and US Weekly tracking of KPIs Training and knowledge sharing across US and China Project completed July 21 Post completion Weekly monitoring of TAT and Product Quality E sculpting and Shell Manufacturing of custom products. Custom Products Assembly in Xiamen 11

12 Consolidation of factories in the US Scope: Close factory in Chicago and move everything to factory in Minneapolis. Pre requisite was the off shoring of production Project initiated Dec 2012 Detailed cookbook Governance: Program management Bi weekly steerco s including commercial management. Voice of the customer Project completed August 1 Consolidated manufacturing of customproducts products. 12

13 Back up factory in China Purpose: Mitigate the risk of main factory being incapacitated. Approach: Establish backup site within same area as main factory. Backup equipment purchased and installed. The factory is currently used for refurbishment of returns. In the event of main factory being incapacitated, employees will be redirected to backup site. Rf Refurbishment bih tin new factory. Prepared warehouse space 13

14 Going forward Continuous improvements Flexibility & agility 5% 14