Outsourcing or DIYS? The Husqvarna Business Case

Transcription

1 Outsourcing or DIYS? The Husqvarna Business Case

2 Specialist in providing industrial equipment engineering and technical documentation solutions and services Over 1800 designers and specialists Offices (45) in Finland, Sweden, Netherlands, Denmark, USA and China Shares in NASDAQ OMX Helsinki Ltd. (ETT1V)

3 Etteplan customers focus on their core business and outsource functions

4 Etteplan signs global outsourcing agreement with Husqvarna Group Jan 22, 2015 Etteplan and Husqvarna Group have entered into a long-term cooperation agreement, whereby Husqvarna Group will outsource the production and maintenance of the technical documentation of all the Group s products and brands to Etteplan. The agreement will become effective as of February 1, The implementation of the global agreement will start in Sweden, where nine of Husqvarna Group s employees will be offered employment at Etteplan s office in Jönköping. In the second phase, the plan is to implement the agreement at Husqvarna Group s sites in Ulm, Germany, and Charlotte, USA. In the third phase, Husqvarna Group s sites in China and Japan will follow suit. The technical documentation, meaning all the technical documents and manuals that are created for users and service personnel, ensures the safe and correct use and maintenance of the products. Etteplan has advanced expertise, tools and processes to create and distribute high-quality and cost-efficient technical documentation. We look forward to seeing our cooperation with Etteplan bear fruit. We are confident that the quality of our technical documentation will improve to the benefit of our customers, says Henric Andersson, Senior Vice President, Technology Office at Husqvarna Group. Husqvarna Gardena McCulloch PoulanPro Zenoah Jonsered Diamant Boart WeedEater Flymo Klippo And many more

5 High quality documentation for safe use and maintenance of Husqvarna s products Challenges for Husqvarna technical documentation: Best-in-class documentation to support business development and user safety Improved time- and cost efficiency including resource flexibility Future proof documentation Solution: Global strategic partner, harmonization & efficiency improvement Comprehensive evaluation of the most renowned suppliers within technical documentation Etteplan chosen as strategic partner responsible for production and maintenance of all technical documentation for all products for all Husqvarna brands

6 Smart way to smart products From local solutions to one global partner Etteplan s Outsourcing model has well defined processes for: Operational processes, tools & IT Organization, HR & management Business model & legal agreements Global implementation in three steps The co-operation starts in Sweden where Etteplan takes over the business and nine Husqvarna employees transfer to Etteplan, after this Husqvarna Group in Ulm, Germany and in Charlotte, USA. Next, China and Japan will follow. Global implementation of best-in-class methods and tools Flexibility and cost effectiveness is reached through offshoring

7 Result: a global solution Through Etteplan s state of the art tools and processes for creating cost effective and future proof technical documentation Husqvarna gets: Business leading documentation One global organization and harmonized processes and tools Measurable improvement in effectiveness through KPIs. Welcome to Etteplan! For the staff the transfer means opportunities to develop and pursue a career in an organization with technical documentation as its core business.

8 Technical Documentation

9 Technical Documentation requirements In compliance with the highest regulatory and safety requirements On time At the lowest possible cost At the highest quality standards Resulting in optimized maintenance operations Future proof

10 Challenges MAINTAIN/UPDATE MAINTENANCE Level of effort CONFIGURATIONS TABLETS/SMARTPHONES Engineering Technical Documentation Platform TRAINING SAFETY REQUIREMENTS Technical information Design Prototype Test Modify Test Release Ship Lifecycle WEB DISTRIBUTION VERSION MGMT LANGUAGE REGULATORY REQUIREMENTS TECH SUPPORT USER SUPPORT AGILE/WATERFALL TEMINOLOGY MIX SW UPDATES QUALITY LABELING LOCALIZATION SERVICE ILLUSTRATIONS AFTER SALES BUSINESS GUI FAQ/FORUM TIME-TO-MARKET BULLETINS ACQUISITIONS TRANSLATION

11 Cost and lead time must come down without compromising in quality Quality Work orders Lead-time Cost Outsourcing results in 30-50% cost reduction

12 Fixed cost of technical documentation Cost efficiency gains

13 Content strategy

14 Flexibility for optimized business operations

15 Implementing a global platform for Technical Documentation 4 corner stones for technical documentation Competent authors and illustrators Simplified content Single sourcing Efficient, future safe, high quality technical information Topic-based authoring

16 Simplify content: Etteplan STE Meeting global standards for technical communication High safety and quality through clarity Major cost savings on translations, localization and printing The best service is no service Approach: HyperSTE content optimization software Training Define corporate standards for tone of voice, style, terminology, SEO keywords and other guidelines

17 Simplify content: Etteplan VISUAL Simplified Technical Illustrations (STI): single sourcing for illustrations, proven methodology for high quality and efficiency in illustrations, visual manuals and instruction cards Benefits: High quality and reusability Up to 70% time savings Reduced time-to-market Standardized way of illustrating No language barriers No translations needed

18 Single sourcing & topic-based authoring: Etteplan DOC Engineering Data Reuse Easier to manage Faster to retrieve Multiple publication formats DITA / S1000D Version 1 Version 2 Version 3 Analysis of equipment, breaking it down to create modular units Common Source database DM1 DM2 DM3 DM4 DM5 DM6 DM7 DM8 Version 1 PDF Manual Version 2 Online Manual Version 2 SIS DM1 DM3 DM1 DM2 DM1 DM3 DM4 DM6 DM3 DM4 DM4 DM8 DM7 DM5

19 Outsourcing: Etteplan INFO Complete outsourcing of technical documentation to Etteplan, where we deliver your technical documentation that: Meets the requirements, and is Cost effective On time At a high quality Approach & benefits: A. Etteplan assumes the responsibility of your technical documentation Typical cost savings: 10% B. Methodology (STI, STE, Single Sourcing) Typical cost savings: 30% C. Offshoring to China Typical cost savings: 30%

20 Advanced Technology to support your content strategy

21 Technical information framework

22 Etteplan Outsourcing Process

23 Typical evaluation areas Quality Methods Processes Take-over Personnel/HR Competence Resources Local vs. central Management Organization KPIs Development of the business Process- and change management Methods Tools Economy Business model Other Trust

24 Husqvarna / Etteplan co-operation

25 Etteplan s proven model for effective service management Cornerstones for succesful co-operation Operations Management HR management Streamlined technical documentation operations World-class technical information methods and tools Harmonized local and offshored operations Professional service management Daily resource optimization Performance measurement Steering together with customer Best competences in the industry Multi-competence development Stream lined HR processes Optimal working conditions Development plan Continuous process and tools development Harmonization of practices Future proof technical documentation

26 Roadmap Service initiation Guidelines for cooperation Assessment Negotiations, decision Ramp-up Continuous operations Building of common Overall understanding Current state Objectives Possible solutions Business case Detailed assessment of current operations Assessment of detailed possible solutions and their benefits Assessment of processes, methods and tools Building common understanding of the solution Initiation of HR processes Proposal and report including updated business case Letter of Intent Initiation of cooperation negotiations Setting up project and sub projects Signing of service agreement Outsourcing Agreement Asset Transfer Agreement Service Agreement Communications HR processes Communications project Initiation of management bodies and processes Enable measuring the business Development project Service delivery according to agreement Measurement and management Development

27 Personnel / HR

28 Outsourcing HR perspective Service initiation Guidelines for Cooperation Assessment Negotiation, decision Start-up Running Operations Legal Running and supporting union contacts Due Diligence inventory of Benefits base for business agreement calculations Communication employee meetings news letter with FAQs Legal aspects, Detailed information Negotiating with unions Employee letters about the transfer If needed new employment agreement are issued by Etteplan Employee meetings Personal induction meetings Union contacts Integration and harmonization of benefits. Union contacts. Running and supporting union contact.

29 Career Path Specialist, Project Management & Managerial CEO Senior VP R&D Program Manager BU Director Chief Project Manager GROUP LEVEL Solution Architect Regional Manager COUNTRY LEVEL Information Architect Senior Project Manager PROFIT & LOSS Department / Area Manager Information Designer TERMS OF EMPLOYMENT Team Manager Project Manager Senior Technical Writer, Senior Visual Designer Team Leader Technical Writer, Visual Designer Level 2 * Project Engineer LOCAL LEVEL Technical Writer, Visual Designer Level 1 * TECHNICAL PRODUCT DOCUMENTATION SPECIALIST PROJECT MANAGEMENT MANAGERIAL

30 Managing

31 Organization & cooperation Governance Governance Steering group Escalation path Development Preparation of development projects and commercial development Operative planning Etteplan Global Service manager Customer Global Documentation Manager Resource & project planning Escalation path Escalation path Product Cat. A Product Cat. B Product Cat. Technical documentation Product Category A Product Category B Product Category Development Customer projects

32 Examples of results followed up Examples of performance indicators Typical objectives Smart way to smart products Increase delivery reliability Increase flexibility Increase efficiency Improve quality Delivery reliability Delivery reliability Delivery accuracy Lead time Work performance Delivered units per time span Time per delivered unit Service specific indicators (e.g. reusability, word count) Quality assurance Compliance rating No of revisions per delivered unit Conformance to requirements Targeted results Cost (per unit, total, service specific) Delivery reliability Quality

33 Monitoring the service

34 Process and Change management Strategy Husqvarna strategies TI strategies Roadmap Long-term targets Development projects Specific development initiatives in target projects

35 example of incentive based pricing models Cost efficiency Total Function or Separate Deliverables Indicative price with staggered incentives (profit sharing and discounts) Price decrease over agreement period Fixed price, per Work package Deliverables Process Function Flat rate Compound pricing Delivery reliability SLA, including Discount for late delivery Profit sharing Ramp-up / Ramp-down pace Quality Discount for targets not reached Profit sharing

36 Status Husqvarna and Etteplan co-operation Implementation Sweden staff taken over Germany and USA service take over being planned Development Implement common efficient tools and methods started Cost efficient resource management started Modern publishing started

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