Nordex SE. Capital Markets Day Production & efficiency - Dr. Marc Sielemann

Transcription

1 Nordex SE Capital Markets Day Production & efficiency - Dr. Marc Sielemann Rostock, 13 October 2011

2 WELL ESTABLISHED PRESENCE IN GROWTH REGIONS Global production, sales and distribution network Chicago Hamburg Kolding, Uppsala Rostock Yinchuan Jonesboro Beijing Manchester Manchester Dublin Dongying Barcelona, Porto Paris Rome Roma Istanbul Warsaw Headquarters Production Sites Subsidiaries Countries with significant installations of Nordex turbines 2

3 MAKE OR BUY? NORDEX APPROACH IS LOW VERTICAL INTEGRATION In the case of a brand-new industry the supply chain may not be developed so you may do things you otherwise wouldn t but in the long run Nobody can be the best at everything! So with rising maturity of the supplier chain... Build a team of highly professional partners, each belonging to the best in their sphere and thus: Reduce vulnerability to ups and downs in capacity utilization Make use of suppliers knowledge and innovations Be an intelligent system integrator 3

4 CHALLENGES FOR PRODUCTION AND SUPPLY CHAIN FROM TODAYS MARKET ENVIRONMENT Over capacities in the industry will lead to further price pressure Efficient manufacturing processes are essential Professional customers (utilities, IPPs) expect the highest possible yield and high reliability Production processes have to guarantee constant high quality Lead times between order intake and turbine installation are getting shorter Lead times within our own production and with respect to our suppliers have to be shortened Improvement of Working Capital New lean logistic processes and active materials management are required In a nutshell: production needs to be industrialized! 4

5 THE AUTOMOTIVE BUSINESS IS A VERY MATURE INDUSTRY TO LEARN FROM! Production figures passenger cars Body shell welding shop at VW 70 million mill. in Einzel- und Kleinserie Ford assembly line 1913 Several hundred million passenger cars built since the 50s The total number of worldwide installed turbines today is equivalent to a single day s production of passenger cars * Almost 100 years of experience with assembly line production Some production process have been highly automated * 192 GW installed, turbine size 1.1 MW 5

6 THE WIND INDUSTRY SHOULD FOLLOW PROVEN PRINCIPLES OF AUTOMOTIVE INDUSTRY The production of wind turbines MUST be done based on principles of the automotive industry Or this is just another fallacy like: «640 Kilobyte ought to be enough for anybody» Bill Gates, 1981 Thesis «The worldwide demand for motor vehicles will not exceed 1 million just due to the missing availability of chauffeurs» Gottlieb Daimler, Inventor, 1901 «No flying machine will ever fly from New York to Paris... [because] no known motor can run at the requisite speed for four days without stopping» Wilbur Wright, Pioneer of aviation What makes us sure and what exactly can we learn? 6

7 IS AUTOMATION THE KEY LEARNING? Automation makes sense if the product is produced in large quantities Even if the production numbers further increase many investments are not economically viable. At the same time turbine technology is developing rapidly so that inflexibility though automation has to be avoided. People are still the most valuable and flexible resource! it is necessary for quality reasons In order to guarantee repeatability and accuracy it can be of advantage to implement automated solutions. Automated checking procedures make lots of sense. it is required due to ergonomics /abilities Components used in the wind industry are extremely heavy and very large. Much is invested into handling devices. Automation is an option but it is not the main solution! 7

8 STANDARDIZED PROCESSES AND LINE PRODUCTION ARE THE SECRET In contrast to the former stall build line production gives the factory a heart beat and has a positive disciplining impact on other parts of the company as well. Different sizes, weights of parts, volumes compared to automotive business don t play a role. Far more it s the underlying principles of: Defined cycle time & automatic transport Work pieces (e.g. machine houses, hubs, drives) are automatically transported to the next station reducing work effort but more important Work has to be finished in a defined time driving up efficiency. Through put times and output can be and calculated simply which makes planning easier. Problems are not covered up but are brought to the surface (e.g. line stops) and are dealt with immediately. This guarantees continuous improvement. 8

9 STANDARDIZED PROCESSES AND LINE PRODUCTION ARE THE SECRET Standardized work & efficient processes Tasks can be split into smaller standardized portions thus facilitating easier learning, repeatability and in the end improving quality. Easy implementation of quality gates. Each task and the whole work place environment can be optimized for efficiency: e.g. finding the best location for tools and parts, elimination of non value added tasks. 9

10 COMBINED WITH LEAN LOGISTICS AND AN INTELLIGENT SHOP FLOOR MANAGEMENT SYSTEM Visual transparency There is a directed material flow based on the line structure. The state of the factory is apparent to everybody at every point of time. Additional markings on the floor show the locations of materials. Boards, cards and and lights show the state of processes. Performance is measured and tracked on team boards based on defined KPIS for productivity, reliability of deliveries and quality. Synchronized Material flow Material is staged directly to the line. Supply is based on standardized processes with a big share of JIT-deliveries. Supplies are synchronized with production needs. All of this leads to reduced inventories. Regular meetings There is a defined cascade of meetings on the shop floor. Reasons for deviations of performance based on KPIS are discussed daily. Problems are solved immediately and at source of occurance if possible. Otherwise they are escalated to the next meeting level. and thus Nordex has implemented its own production system like leading car manufacturers and other mature industries (e.g. aerospace, harvest machinery ) 10

11 delivery reliablity NORDEX PRODUCTION SYSTEM SIMILAR TO OTHER LARGE SCALE COMPANIES Toyota Bosch Leadership & Organisation Built-in-quality Visual Management Standards Audi Efficient processes Synchronous flow production 11

12 IMPACT ON INTERFACE PARTNERS SOME EXAMPLES Sales Proper sales forecasting Procurement Reliable suppliers Constant improvement of parts quality TCO evaluations NORDEX production system Project management Consistent installation planning Engineering Early involvement in design Design for manufacturing Complete BOM 12

13 Supplier HIGH VOLUME DIRECT DELIVERIES AND STANDARDIZED LOGISTIC PROCESSES IMPLEMENTED Nordex logistics center Set parts Receiving Warehousing Picking and set kittng Production Buffer Via Shuttle Hall sets, different parts 46% of total value Delivery DMR Line feeding Heavy and large parts Direct delivery 6 part families, 90 different parts 40% of total value Small parts, Bulk material Warehouse Delivery Small part warehouse 800 different parts 14% of total value Every part follows a pre-planned set of process steps with full transparency 13

14 FIXED CONTRACTED AMOUNTS REPLACED BY ROLLING FORECAST AND STAGED CALL OFF PRINCIPLES Illustration of the obligations for a gearbox Past Present Obligation Purchase order Obligation Delivery schedule with flexible release steps Production release Material release Bearing release 1 year 4 12 weeks 9 months 1 year 14

15 MASSIVELY REDUCED OBLIGATIONS DUE TO NEW CALL OFF PRINCIPLES Development of obligations to suppliers (today vs. 2009) Percentage of Obligation/ WTG Goods Receiving date 10 weeks before EXW-date the reduction sum up -22% 18 weeks before EXW-date the reduction sum up to -63% 24 weeks before EXW-date the reduction sum up to -80% Weeks 100% 80% 60% 40% 20% 0% Obligations, formerly Realised reduction Obligations, status today 15

16 INITIAL RESULTS Box assembly Flow line assembly Max. capacity [#WTG] (2 shifts) Throughput time [days] Ø 13 days 5 days (2 shifts, 4-hour cycle) Productivity [hrs./wtg] - 50% assembly + 20% logistics Not Accuracy of demand schedule ~ 95% assignable Sequence stability Not assignable actual: 100% 16

17 IMPRESSIONS BEFORE AND AFTER Before Before After After 17

18 IMPRESSIONS IN ROTOR BLADE PRODUCTION FOCUS AUTOMATION Mould for structural parts using a non-woven fabric machine: high precision and reduced production time Retractable tunnel for the automatic drying process: very swift hardening Automatic finishing plant: coating completed in 4 hours (previously 260 work-hours required) Heavy-duty robot: 900 kg load (normally kg), complete handling of rotor blade bores and bolts 18

19 OPERATIONS VALUE CHAIN: ON THE WAY TO OPERATIONAL EXCELLENCE Sourcing Supply Chain Management Industrial Production Targets Cost reduction Lower working capital Productivity & delivery reliability Measures Setup global sourcing strategy Supplier integration (co-development) Implement Supply Chain Management Seamless integration with production International production footprint (Europe, China, US) Production system: Nacelles assembly lines & automated production systems Results to date Measures are implemented; full economic impact from 2012 Reduction of component order lead times by 25% on average Realisation of efficiency improvements (e.g. Reduction of production lead times and WIP by 30%) 19