Axel Leijonhufvud, Executive Vice President, Supply · 2017. 8. 9. · Axel Leijonhufvud, Executive...
Transcript of Axel Leijonhufvud, Executive Vice President, Supply · 2017. 8. 9. · Axel Leijonhufvud, Executive...
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Axel Leijonhufvud, Executive Vice President, Supply
Cargotec Capital Markets Day, 21 September 2010, Stargard Szczeciński, Poland
Global footprint – local supply
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Cargotec Supply
Mission and vision
Cargotec Supply drives efficiency in the supply chain. A world class supplier
with local presence, supporting Cargotec’s global business objectives.
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Ambition
Be the preferred supplier for Cargotec
business areas and product.
Objectives and targets
• Quality
• Speed and flexibility
• Cost competitiveness
• Continuous improvement
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Mode of operation
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MAUMAU
Customers Markets Solutions Product Supply
Assembly
Unit
MAUMAUAssembly
Unit
MAUMAUAssembly
Unit
Project
Supply
supplier
supplier
supplier
supplier
supplier
supplier
supplier
supplier
supplier
supplier
supplier
Global Coordination
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Prod
OHOutbound
freight Direct
LaborInbound
freight Direct
Material
Total
COGS
Optimising cost of Product Supply means optimising all
parts of cost of goods sold (COGS)
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The Supply has developed
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Suppliers Suppliers Suppliers
Assembly
Unit
Assembly
Unit
Assembly
Unit
Customers Customers Customers
Local & independent plants
• No co-ordination between Hiab, Kalmar and MacGregor.
• Tradition manufacturing style (high level of buffers)
• Many small, local factories serving global product lines
• All factories worked in different ways and no common processes
• Sourcing, logistics and quality was locally driven
• One single Supply organisation
• A global network
• Lean production concept (reducing waste)
• Factories assemble a wide range of equipment
• New ways of working - One Company approach
• A global sourcing, logistics and supplier quality
organisation that take full advantage of the total
product volumes
Suppliers
Assembly
Unit
Assembly
Unit
Assembly
Unit
Global & collaborating network
From “Site oriented”… …to “Supply industrial system”
CustomersCustomers Customers
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Outsourcing of component production
• Our core processes
• Assembly
• Sourcing
• Logistics
Component manufacturing is not a core process
We cannot be leader in component manufacturing
We need to increase our flexibility in order to handle volume volatility
Component manufacturing requires significant fixed assets and working
capital
The consequence is that we will outsource or divest our existing
component manufacturing over time
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Tampere
Raisio
Hudiksvall
Lidhult
Zaragoza
Bangalore
Chungbuk
Shanghai
Ottawa
Dundalk
Ipoh
Global footprint today
Narva
Stargard
San Antonio
Bispgården
Singapore
Tianjin
Kristiansand
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Supply strategy
Growth economies
Close to the customers
Competitive supplier
structure
MAUs with competitive
cost structure
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Deliveries
• High flexibility and short
lead times
• Develop S&OP process
further
• Secure availability of
components
Quality
• Multi certificate
• Global Claim System
• Common Tools and
processes, ability to
track production related
quality cost
Cost efficiency
• Cargotec Production
System (CPS)
• Move from high to low-
cost countries
• Consolidation of
suppliers
Focus moving from downsizing and rebuilding to
deliveries, quality and cost efficiency
Cost/efficiency
• Downsizing, mainly in factories >
1,700 employees (47%)
Factory closings in 2009: Finland, US,
Sweden, the Netherlands and Indonesia
• Inventories -53%
Global footprint strategy
• MAU Stargard
• MAU Shanghai phase II
• Focus on assembly (outsourcing)
2009
2010
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Production system Employment Customer Focus
To improve the efficiency of cargo flows
Teamwork• Cross functional teams
• Project teams
• Problem solving teams
• Continuous improvement
teams
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• Values (understanding and
implementation workshops)
• MAU Performance Centre
• Std monthly report
• Morning meeting process
• Policy Deployment
• QDC process
5 S• A method to organize,
standardise and clean
to get more efficient
work places.
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• 5S work shops incl.
std. work
• Checklists / Audits in
place
• Whole plant to be
completed end 2010
Standard Work• Value add analysis (VSM)
• Work balancing
• Standardise instructions
• Process design
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• AviX std. work
• Std. documentation
SCM• Integrate Supply and
Demand (Pull flow)
• Value chain analysis
• Product lifecycle
management
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• S&OP
• Supplier forecast
• Lead-time / flexibility
std and targets
To be the world’s leading
provider of cargo handling
solutions
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Lean production concept
Production system
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Production system
• Involves using less of everything –
capital, inventories, time, human
effort – across all aspects of
production and service delivery
• Lean thinking concept, originally
developed by Toyota
• All MAUs have a Performance
Centre
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Responsible operational practices
• Our environmental, workplace health and safety
systems are based on international ISO standards.
• In building our sustainability reporting we rely on the
guidelines of Global Reporting Initiative (GRI).
• Our value chain is developed with our quality
management system.
• We also monitor the environmental management
principles of our suppliers.
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Towards a professional and global sourcing
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EMEA Eastern EU AMER APAC
2006 2009
Volume in USA decreased from 2006 to 2009 mainly due to weakening market
2011
Increasing sourcing from Eastern EU and APAC
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Working with suppliers - more than price…
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Parts price
Lead time
Security and trust
Global footprint
Continuous improvements- products
- efficiency
Quality
Cooperation
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10 biggest suppliers cover ~40% of total direct material
spend
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~3,000
suppliers
10 biggest cover
~40% of total
direct material
spend
5 of the
biggest are
Chinese
Steel structures
CastingsSteel
Steel structures
Cabins
Hydraulic cylinders
Castings
Hydraulics
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Sourcing focus areas in 2010
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Focus area Actions taken/ongoing in 2010
1
3
4
2
Cost reduction • One Company synergies• Localisation• Supplier consolidation
• Volume forecasting & communication function established
• Critical supplier list by MAU• Capacity validation
Availability
Lead time • Localisation of supplier base in Eastern Europe and China
• Lead times increasing due to increased demand, example steel
• Supplier Quality Engineering• Proactive participation in R&D process• Common tools and processes
Supplier quality
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On top on the agenda in supply 2011–2012
• Secure and safeguard deliveries
• Efficient S&OP plan in place (demand
forecasting)
• Finalise the on-going outsourcing activities
• Implement, sustain and verify new ways of
working and processes
• Painting system Europe
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