Weir Minerals India - ciitcm.inciitcm.in/site/mmbase/attachments/429422/Surendra_Menon.pdf · Weir...
Transcript of Weir Minerals India - ciitcm.inciitcm.in/site/mmbase/attachments/429422/Surendra_Menon.pdf · Weir...
Weir Minerals India
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Driving growth, the Weir Way:
�Innovative Action
�Collaborative Mindset
�Global Capability
�Value chain excellence
Weir Minerals India
Surendra Menon,Business Head, Weir Minerals India
CII Cost Congress, 28 th November 2013
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Weir Group: over 140 years of engineering legacy…
A host of brands acquired and associated
1872G&J Weir formed•1881 – Direct action pump patented•1884 – First land based desalination plant (Egypt)
1900A diverse business•1912 Pipeline for Anglo Persian oil company•1924 Pre-fabricated housing •1926 Autogiro development•Ammunitions for WWI & II
1946Going public•1947: G&J Weir listed on LSE•1967: The Weir Group formed•1969: Weir Pumps Ltd formed
1980�Acquisition trail: LGE Process, Hopkinsons, Atwood & Morrill, Allen Gwynnes, Floway, Envirotech , Batley, SPM, MESA, GEHO, WARMAN
2001Business transformation & restructure
2008New group structure & New agenda
1872G&J Weir formed•1881 – Direct action pump patented•1884 – First land based desalination plant (Egypt)
1900A diverse business•1912 Pipeline for Anglo Persian oil company•1924 Pre-fabricated housing •1926 Autogiro development•Ammunitions for WWI & II
1946Going public•1947: G&J Weir listed on LSE•1967: The Weir Group formed•1969: Weir Pumps Ltd formed
1980�Acquisition trail: LGE Process, Hopkinsons, Atwood & Morrill, Allen Gwynnes, Floway, Envirotech , Batley, SPM, MESA, GEHO, WARMAN
2001Business transformation & restructure
2008New group structure & New agenda
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� 200 manufacturing and service facilities� Over 14,360 Employees worldwide� Market capitalisation (approximately) £3.5bn FTSE 85th position
Order Input £2,397m
Revenue£2,538m
Operating Margin 19.1%
2012 Results
Group overview today – globally established business
The FTSE 100: Is top100 companies listed on the Lo ndon Stock Exchange with the highest market capital ization
Operating Profit£486m
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Three sector focused divisions
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• Serving Indian market since 1978• Significant player in the industrial valves market for
O&G, Power and Industrial sectors• Leading supplier of diaphragm valves;• Plant located in Hubli, with 12 sales offices• Strong EHS, CSR Practices
• Established in 2003 as WMI• Manufactures pumps, valves, cyclones, mill liners,
screens & other minerals products• Strong life-cycle extension services• 260 people; 4 plants (Bangalore), 10 sales offices
Weir India: serving the Indian industry for over a decade
• Innovative engineering solutions• Centre of excellence in product development, engineering
analysis, plant engineering, etc.• Office based in Bangalore
Weir BDK Plant
Minerals Plant
Services facility
EnSci Office
Weir India Regional Offices
Minerals Service Centre
Footprint •32 Distributors•14 Sales Offices•2 Service Centers
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Weir Minerals India: the business today
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Product portfolio for mineral processing industry
Val
ves
Pum
ps
Cyc
lone
s
Mill
Lin
ers
Rub
ber
prod
ucts
Min
e-de
wat
erin
g
Scr
eens
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Markets served and key customersWeir Minerals India: the business today
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Weir Minerals India: Business Processes established in 10 years
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Strategic focus towards cost managementWeir Minerals India: the business today
Core Competencies
Product Engineering
Supply Chain Development
Innovation Management
Operations Excellence
Differentiation of product by being unique with the ability to exploit new trends in specific segments.
Com
petit
ive
Adv
anta
ges
Sustainable Competitive Advantage
Cost Focus through delivering cost advantage for each target segment viz. Minerals, Power and Gen. Indl.
CostFocus
DifferentiationFocus
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Depth in strategy developmentWeir Minerals India: the business today
Policy Deployment Matrix
Risk Dashboard
Competitive AnalysisScenario Analysis
TCM Focus: Factoring structured TCM framework to overall strategy formulation for cost leadership. Integrate cost measurement into strategic processes – new customer solutions, new markets, convert PDM to action plan with Cost Management
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Delivering engineering excellence for enhancing value proposition
Product development�NPD structure�Collaboration with EnSci�Leveraging Weir technology & know how
Valves Design Center of Origin (DCO)�A well established DCO since 2011;�Current program includes 30 global projects in the hopper - twelve completed, nine active , one in-active and eight road map projects;�Key product releases:
• New generation Pinch valves;• Expansion of WB series;• High pressure WH series.
Innovation�Six patents (P)
• KGV sleeve design;• PU-Ceramic wet end;• One piece ceramic impeller;• Build process for ceramic impeller.
�Six more claims under review
VA VE initiatives�Product rationalization;�Part count reduction;�Weight optimization;�Part proliferation;�Design optimization.
Weir Minerals India: the business today
TCM Focus: Support in ‘cost of developing new product linked to RFQs’, attempt value proposition to customer in a product, Structured target costing methodology to be attempted.
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Order to Cash VSM
Lean in Finance BP*
#REF!#REF!#REF!#REF!#REF!#REF!#REF!#REF!#REF!#REF!
31-Jan-13
Weir Lean Assessment for Finance Function
WMI
Dec-13#REF!Current Self
Assessment Score- Jan 2013
Prior Year End Score 2012
81%#REF!53% 54%Lean Finance Scores (%)
0
1
2
3
4
5Cultural Awareness
Visual Management &Housekeeping
Standardisation of work
Flexible Operations
Continuous Improvement
Accuracy
Data & Resource Management
Responsiveness to deadlines
Customer Service
Level Through Put
Self assessment Score
Dec-13
Prior Year
Net Promoter Score
5
26
23
33
34
43
63
40
34
2012
2011
2010
% Detractor
% Passive
% Promoter
E Quote System
Function wise kaizen mapping
Business & operational excellenceWeir Minerals India: the business today
Weir Commercial systems
Audit date: 5/23/2013
Audit2010
no KPIs
Target H1-2011no KPIs
This AuditNO KPIs
This Audit with KPIs
New Targetno KPIs
New Targetwith KPIs
92% 86% 88% 87% 0% 0%
Weir Commercial Assessment
WM IndiaWCS Score (%)
0
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2
3
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Weir CustomerExperience
CommercialFocus
CompetitorsKnowledge
CustomerKnowledge
MarketKnowledge
PricingKnowledge
5/23/2013
Target H1-2011
Audit2010no KPIs
New TARGET
Level3 (8-10)
Level2 (5-8)
Level1 (0-5)
0.0 1.0 2.0 3.0 4.0
MarketShare
Return Rate
KPIs Score*(range 0-4) 5/23/2013 New TARGET
TCM Focus: Value stream costing, product cost analysis for product weight reduction, roadmap to fix model wise cost reduction
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This Audit,no KPIs
This Audit,with KPIs
New Target,no KPIs
New Target,with KPIs
91% 89% 96% 95%
Weir Lean Assessment 20/03/2012
Lean Score (%) Weir Minerals India
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1
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Deploy…
Cultural
Awaren…
Visual
Mngt &…
Standard.Work
Flexible
Operati…Conti
nuous
Im…
Error Proofing
Quick
Change…
TPM
Material
Control
LevelProductio
n
THIS AUDIT20/03/2012
New Target
Level1 (0-5)
Level2 (5-8)
Level3 (8-10)
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0
1
2
3
4
5
6
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LTAs OTD Inventory Turns
KPIs
THIS AUDIT20/03/2012 New Target
Weir Production System
Machining BP*
Logistic BP*
* BP : Best Practices
Lean at VendorsWeir Procurement System
Purchasing KPI
Business & operational excellenceWeir Minerals India: the business today
TCM Focus: Strategic levers for material cost reduction, deep dive analysis for variation in resource analysis, technology based predictive cost structure, TCO (Total Cost Ownership) incubation
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Urgency to adopt TCM framework
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• Slowing down of investments in domestic projects• Mining regulations by Supreme Court• Export markets slowing down owing to global
slowdown
Economic Scenario
• Highly competitive – buyers market• Price competitiveness• Diminishing product differentiation• Fragmented market• Poor acceptance of total cost of ownership concept
Industry Scenario
Strengthen key processes:•Engineering excellence•Operational & delivery excellence•Services•Supply chain excellence
Strategic need
Prepare the organisation for sustained competitiveness through a
matured & scientific approach to meet the strategic ambition of growth
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Engaging with TCM
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• Identify key efficiency linkages & levers to create sustainable competitive advantage and customer value proposition
• Benchmark the enterprise in cost management
• Improve processes to create sustainable cost advantages
• Create a roadmap to inculcate a cost culture and move forward on cost management process
MinimalMinimal
FunctionalFunctional
OperationalOperational
TCM EnabledTCM Enabled
ExemplaryExemplary
Defined objectives
Total Cost Management Maturity Model
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Thank You!
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