Process Harmonization at Philips Healthcare, Refurbished Systems

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1 Process Harmonization at Philips Healthcare, Refurbished Systems

2 A born innovator Philips founding fathers: Frederik, Gerard and Anton Philips Philips was founded in 1891, in Eindhoven, The Netherlands, to manufacture incandescent lamps and other electrical products. For more than 120 years, we have been improving people s lives with a steady flow of ground-breaking innovations.

3 Presence in more than 100 countries Philips has R&D centers and manufacturing sites in all continents North America Employees: 29,233 R&D centers: 22 Manufacturing sites: 40 Asia Employees: 40,438 R&D centers: 13 Manufacturing sites: 25 Latin America Employees: 3,189 R&D centers: 3 Manufacturing sites: 6 EMEA Employees: 41,829 R&D centers: 21 Manufacturing sites: 25 1 Source: Philips Annual Report 2013.

4 Royal Philips 37% Lighting 42% Healthcare Est Headquarters in Amsterdam, Netherlands 113,000+ Employees worldwide in 100+ countries 21% Consumer Lifestyle 23.3 billion Sales in 2013 Portfolio 70% business-tobusiness $ 9.8 billion Brand value in 2013 * Based on sales over last 12 months June 2014 (excluding Central sector, IG&S)

5 5 Creating the future of health care and saving lives

6 Healthcare What we do. Where we are. Philips Healthcare Businesses Geographies 1 Imaging Systems Ultrasound Patient Care & Monitoring Systems Healthcare Informatics Solutions & Services Customer Services Western Europe North America Other Mature Geo graphies Growth Geo graphies 2 29% 8% ~30% ~5% 26% 9.6 Billion sales in ,000+ People employed worldwide in 100 countries 20% 8% of sales invested in R&D in % 12% 25% 450+ Products & services offered in over 100 countries 1 Based on sales full year Growth geographies are all geographies excluding USA, Canada, Western Europe, Australia, New Zealand, South Korea, Japan and Israel 6

7 Healthcare What we do. Where we are. Philips Healthcare Imaging Systems 7 Interventional X-Ray Diagnostic X-Ray CT MR SPECT/CT PET/CT Mammography

8 Healthcare What we do. Where we are. Philips Healthcare Ultrasound Cardiac Ultrasound General Imaging Point of Care solutions OB/GYN 8

9 Healthcare What we do. Where we are. Philips Healthcare Patient Care & Monitoring Systems 9 Patient monitoring Sleep disordered breathing Cardiac resuscitation ECG solutions Ventilation Respiratory Care

10 Healthcare What we do. Where we are. Philips Healthcare Healthcare Informatics Solutions & Services Consulting Ambient Healing Environments Hospital Transformation services Clinical informatics Imaging Clinical Applications & Platforms 10 Enterprise Informatics Hospital to Home Home Monitoring Home Monitoring

11 Healthcare What we do. Where we are. Philips Healthcare Customer Services Clinical education Site planning and project management Education Performance services Maintenance Product Support 11

12 Refurbished Systems Best, The Netherlands Interventional X-ray MR CT Cleveland, USA MR CT Advanced Molecular Imaging Bothell, USA Ultrasound Confidential

13 Diamond Select refurbishing process Five steps to ensure high quality: 1. Stringent Selection 2. Skilled de-installation and transport 3. Expert refurbishing 4. Effective installation 5. Full warranty and support Confidential

14 Stringent Selection (1) Prime performers with a reliable track record Select types: trade-ins, exhibition models, training systems Age and condition Service history Site audits As needed, on-site inspection Confidential

15 Skilled de-installation and transport (2) Experienced Philips personnel Thorough inspection of hardware and software Functional and image quality tests Specialized packaging and transport Confidential

16 Expert refurbishing (3) Cleaned, disinfected and painted Medical data removed Obsolete / defective parts and vacuum components replaced All components tested Latest software releases available / all field updates installed System configured to your needs Full performance and image quality checks according to original manufacturer s specifications Confidential

17 Effective installation (4) Experienced Philips engineers Installation by Philips trained personnel Calibration to Philips specifications Documented testing Confidential

18 Full warranty and support (5) New system warranty Wide range of Customer Suppport packages Applications training and support Philips Medical Capital financing plans Confidential

19 Our background Founded in 1989, joint venture Metracom Standalone Philips company in 1992 Separate location RS Veldhoven ~100 employees Combination of Metracom USA and Marconi Part of large Philips plant ~45 Employees RS Cleveland One global management team since

20 Our processes in 2009 Two process handbooks with a lot of text. Organization only aligned at the top Different structures and functions RS Veldhoven Different approaches Veldhoven: many site related activities Cleveland: outsourced painting and de-installation Differences in product design No data management system Shared processes within Philips Healthcare Links to Philips Quality Management System Links to Cleveland or Best procedures RS Cleveland 20

21 Approach TOP-DOWN Harmonization Coordinated by Quality and Regulatory Based on simplified process approach Executed by managers and process experts No successful implementation on process level 2010 One QMS : Top-Level document

22 : Transfer to SAP SAP version identical to Philips production sites Global implementation One registration process Global data management work instruction Creation of registration roles Loss of freedom Jan 2011 SAP Go-live Only 10% of SAP functionality To match processes To match skillsets 23

23 Process harmonization SAP tool inspired focus on process alignment Harmonized processes implemented Mar 2011 Significant effort on roll-out Training Audits Key performance indicators 23

24 Organizational alignment Jan 2012: One org chart New functions Planning Manufacturing Engineering Aligned functions Project preparation Shop floor control Order management Create functional experts. Start to utilize tooling 24

25 RS Veldhoven relocated to join Philips Best Project announced Dec 2012 Process changed Offside storage Production flow March 2014, actual move No separate site procedures Supply Chain Security BHV Building management Health, Safety, Environment 25

26 Summary < Future Independent groups One Management One Quality System SAP implementation High Level process Harmonization One Org chart Move-to Best Integral part of Philips strategy LEAN implementation Bottom up process improvement 26

27 Philips delivers innovation that matters to you 19

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