REFA Fachausschuss Chemie

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1 REFA Fachausschuss Chemie Neue Wege in der Supply Chain Walter Degle Augsburg, Nov 08, 2005 Vice President Supply Operation

2 Überleben in Deutschland Die Herausforderung Fertigung von Alltagsprodukten bei hohen deutschen Löhnen Die Lösung 1. Kundennähe zur Stärke machen. 2. Stark flexibilisieren. 3. Arbeitsabläufe perfekt takten. 4. Produktivität jährlich deutlich steigern. 5. Innovationen fördern. 2

3 Über das führende europäische Computerunternehmen Fakten im Überblick: Gegründet 1999 Umsatz GJ 03 ~ 5,3 Mrd. GJ 04 ~ 6,0 Mrd. GJ 05 ~ 6,5 Mrd. 7,000 Beschäftigte Marktführer in Deutschland. Vertreten in allen Märkten Europas, des Nahen Ostens und Afrikas Weltweit unterstützt durch die globale Präsenz von Fujitsu und Siemens 3

4 Die globale Kraft unserer Shareholder Fujitsu ist einer der weltweit führenden Anbieter von kundenorientierten IT- und Kommunikationslösungen für den globalen Markt. Umsatz von ca. $45 Mrd (FY 2003) 156,000 Mitarbeiter Forschungs- und Entwicklungs- Investitionen von ca. $2,4 Mrd. (FY 2003) Über 32,000 Patente Als Global network of innovation bietet Siemens seinen Kunden auf dem Gebiet der Elektrotechnik und Elektronik weltweit innovative Produkte, Lösungen und Services. Umsatz von ca. 74 Mrd. (FY 2003) 417,000 Mitarbeiter Forschungs- und Entwicklungs- Investitionen von ca. 5,1 Mrd. (FY 2003) Über 45,000 Patente 4

5 Lifecycle Flexibility every week one product launch IT infrastructures are powered by a portfolio of A exceptional complete depth and strong products range of business clients A unique choice of servers & storage solutions Consulting Integration Services more than 50 model lines 5

6 Fujitsu Siemens Computers Customers and Sales Channels 50% 25 % 25 % Enterprises Large Small/Medium (SME) Consumer Corporate Reseller Reseller and 2 nd Tier Reseller Distributor Retailer Fujitsu Siemens Computers 6

7 Global reach Worldwide cooperation with Fujitsu means... Americas EMEA Asia / Pacific Global account management Global products Global network of service and system integration partners 7

8 Supply Chain Management Process Based on the Supply Chain Operations Reference Model (SCOR) Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Return Return Return Return Return Return Return Return Suppliers Supplier Supplier Internal or External Our Company Customer Internal or External Customer s Customer SCOR Model 8

9 Efficient processes and continuous improvements are key Customers Business Management Resource Management Product Lifecycle Management Support Commercialize Customer Relationship Management Service Integrate Supply Chain Management Deliver Make Strategy Planning Business Review Human Resources Financials&Assets Process&Information Support Processes Develop Define Sell Go to market Source Plan Total Quality Communication Risk Management Market environment (customers, partners, suppliers) 9

10 Manufacturing Facilities Augsburg BTO and CTO competence Logistic performance (lead time, delivery on time) Technological variety of products (thin clients, workstations, servers) and customizing High Quality Flexibility - breathing factory Augsburg Sömmerda Sömmerda Lean and flexible Fast product introduction process in cooperation with PD 10

11 Abg Factory Key Figures System Production Finance Cost mass 45 Mio Equipment assets -net 4 Mio Capacity utilisation 75% Volume production Server / Rack production Systemboard production Employees Dec 04 indirect 90 direct FSC / temp. 390 / 290 Manufacturing area Component Warehouse Mass Customization Inbound - Warehouse m² Assembly m² Test m² Performance # of orderlines daily Cycle time 2-7 h Quality first pass yield 96% Capacity - Units per day PC System - units Mobiles Servers (Intel based) Racks / CentricStor 50 11

12 Mass Customization WT PC-Production production "low-volume- cell cell" AT&T AT&T FHU Assembly Functiontest 2x 24-fach-HUB cell oriented one-piece-flow large variety lot-size 1 - capability material kitting per unit (pick to light) complete assembly predominantly CAM - controlled KANBAN-principles throughput-time approx. 8 h AT&T Rev. SL HSP Sh Ch. AT&T Rep AT&T f l o w FUCHS FHU AT&T Prüfrechner 12

13 Volume Production Continuous Production production - line f l o w line oriented Just-In-Sequence material bulks to the production-line step-by-step assembly one-piece-flow Low Cost Intelligent Automation (LCIA) throughput-time 2-4 h Direct - Delivery to customer Packing up Functiontest Assembly SW-load Deskbound PCs and Notebooks 13

14 Augsburg SystemBoard factory Key figures Production figures PC- Systemboards: SB complexity 2.4 mio/a ~ 50 Types Assembly lines: 10 Manufacturing area: 8000 m² Units /day (max.) Internal turnover 150 Mio First pass yield : 96 % Lead times PC-Motherboards: Serverboards, Add-On's: 10 h 24 h 14 Employees 228 (direct) + 29 (indirect) 3 Shifts/day, Shifts/week

15 Supply Chain Flexibility we master all aspects of Supply Chain Flexibility 15

16 Configuration Flexibility share of supply chain models % of orders % of delivered units M4Y 1. HY 05/06 16

17 Combining advantages of Asian and European production sites Pre-production of cabinets / barebones in Asia/China utilizing low wage workforce Final assembly close to the customer in Europe with high configuration flexibility short lead-time to customers low inventory levels low risk due to price / currency fluctuations Asia/China Order entry Delivery Europe Barebone Share Asia: % Asia Europe 70% 85% World market Preproduction Components Final assembly Material Lead Time Customer Lead Time 17

18 Design to supply chain Assembly Levels Level I Level II Level III Level IV Level V Level VI Level VII Level VIII Level IX Level X Parts-Mnfg Non- Painted Stamping + Parts + Molding Parts Parts Assembly + Cover Painted Computer Case Computer Case + SPS Flat Cable Back plane PCE Level IV + FDD Kitted with and/ or Fan Plug-in M/B, Add-on Card & Testing Country Kit Input Plug-in CPU CD-ROM DRAM Module Software Installation, HDD Plug-in &Testing Add in Monitor & Test Country Kit Ass y & Test Assembly Assembly SPS Cable Assembly preassembled by ODMs mainly in Asia Back plane Fan Assem bly Floppy Disk Drive Motherboard Add-on Card H D Mouse DRAM Module User Manual C P U Heat Sink CD-ROM Software Installation configured to order, Key board close to the customer 18

19 Produktion Augsburg starke Auftragsschwankungen saisonal Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez täglich

20 Employment Flexibility weekly working hours & temporary workers Shift duration Working hours per week 8 h max 48 h 48 h 35 h 35 h 6 h min 24 h 24 h own workers temporary workers Mon Tue Wed Thu Fri Sat weekday Sun 20% 30% 40% 50% 60% percentage of temporary workers 20

21 die Antwort: flexibler Personaleinsatz Flexible Schichten (6-8 h) Reaktionszeit: täglich Flexible Anzahl Arbeitstage Reaktionszeit: wöchentlich je Woche (4-6 Tage) Flexibles Beschäftigungs- Reaktionszeit: wöchentlich modell Leiharbeit (30-60%) 21

22 Produktivität² Arbeitsorganisation: teilautonome Entgeltgruppen Erfolg Arbeitszeit: flex. Gleitzeit-Modelle Entgelt: Zusatzprämie 22

23 Charles Darwin Es sind nicht die stärksten der Spezien die überleben, nicht die intelligentesten, sondern die, die am schnellsten auf Veränderungen reagieren können 23

24 Thanks for your interest in Fujitsu Siemens Computers! Q&A Walter Degle Augsburg, Nov 2005

25 back up 25

26 Der Unterschied 26

27 Environmentally - friendly supply chain Sourcing Inbound Logisitcs Manufacturing Outbound Logistics Supplier Contracts Audits Continuous information In-house mainboard development and production Reduced packaging material Saving energy and water Reduction of hazardous materials Decrease in waste, waste water and emissions Lead-free soldering Optimal packaging Shift to sea freight when possible Direct shipments to customer 27

28 Industrial excellence. Awards for industrial excellence in Europe Industrial Excellence Award 2003 INSEAD Best Factory to Augsburg factory Overall winner Europe Winner Country Champion 2005 The European Supply Chain Excellence Awards

29 We uncompromisingly optimize our supply chain Flexibility Performance Costs Risks Days of supply raw material R & D cycle time (main projects) 38 weeks % p.a. -15% p.a. -10% p.a Cost per box % 92% 95% 87% Lead time end to end [days] Value add for our customers and shareholders Delivery reliability Securing jobs in Germany against the trend towards low-wage countries 29

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