infrastructure & cities sector, rail systems divisionpage 1 march 2012 © siemens ag 2012...

Infrastructure & Cities Sector, Rail Systems Division March 2012© Siemens AG 2012

Chapter without image

© Siemens AG 2012

International Supply Chains:

Challenges, Opportunities

and Partnerships

28 March 2012

Andrew Lister

Head of Procurement & Materials


Contents

• Siemens Overview

• The Siemens UK Rolling Stock Maintenance Portfolio

• Challenges

• Opportunities

• Partnerships

• Summary


Infrastructure & Cities Energy

Fossil Power Generation

Renewable Energy

Oil & Gas

Service

Cross-sector activities

Siemens FinancialServices

Healthcare

Imaging & IT

Clinical Products

Workflow & Solutions

Building Technologies

Osram

Low and Medium Voltage

Industry

Industry Automation

Drive Technologies

Customer Services

Smart Grid

Mobility and Logistics

Rail Systems

Metal Technologies Diagnostics

Siemens – global Sectors


Locomotives and Components

High Speed and Commuter Rail

Metro, Coaches and Light Rail

Customer Services and Transportation Solutions

Rail Systems

High speed and intercity trains

Commuter and regional trains

Components Refurbishment

Metro rail cars Passenger coaches Tramcars and light rail cars AGT rail cars Components Refurbishment

Metro rail cars Passenger coaches Tramcars and light rail cars AGT rail cars Components Refurbishment

Electric and diesel-electric locomotives

Propulsion and control components

Bogies for metros, tramcars, high speed trains, and locomotives

Electrical equipment and traction systems for rail cars

Refurbishment

Electric and diesel-electric locomotives

Propulsion and control components

Bogies for metros, tramcars, high speed trains, and locomotives

Electrical equipment and traction systems for rail cars

Refurbishment

Maintenance of rolling stock and infrastructure

Spare parts service Test and validation center Repair center Consulting and

system design System engineering, project

and interfacemanagement

Maintenance of rolling stock and infrastructure

Spare parts service Test and validation center Repair center Consulting and

system design System engineering, project

and interfacemanagement

Siemens – Rail Systems

Twelve Fleets, Eight Operators

16x4 car Class 333 EMU (AC) Maintenance – Leeds Staffing – 22 Contract – Maintenance, 35 years

Metronet Central Line Contract 1420 Bogies to modify

67x4 car Desiro EMU (AC) Maintenance – Northampton/Crewe Staffing – 70 Contract – Full Service, 20 years

51x3 car Class 185 Desiro DMU Maintenance – Manchester/York Staffing – 130 Contract – Full Service, 8 years

14x4/5 car Class 332 EMU (AC) 5x5 car Class 360 Desiro EMU (AC) Maintenance – Old Oak Common Staffing – 42 Contract – Full Service, 19 (2) years

127x4 car Class 450 Desiro EMU DC 45x5 car Class 444 Desiro EMU (DC) Maintenance – Northam / S'Hill Staffing – 200 Contract – Full Service, 20 years

21x4 car Class 360 Desiro EMU AC Maintenance – Ilford Staffing – 25 Contract – Maintenance, 7 years

Eurostar Trains and Service 10 x e320 Velaro High Speed TSSSA – 10 Years and Depot

Modifications

Maintenance Facilities

16x4 car Class 380 EMU (AC) 22x3 car Class 380 EMU (AC) Maintenance – Shields, Glasgow Contract – TSSSA, 10 years


Scope of supply

Full service Contracts

Safety and Integrity

Planned and Corrective Maintenance

Overhauls (at train or component level)

Obsolescence

Development and Innovations

Major Repairs

Cleaning


Over 350 trains in service travelling

over 50 million miles per annum

Rail Systems has a commuter fleet of some of the most reliable trains in the UK


“New EMU” ReFocus Reliability Figures


“New DMU” ReFocus Reliability Figures


Challenges - Scale

1508 vehicles in service

50 million miles of operation annually

650 staff

10 depots (six built by Siemens)

1 million materials transactions annually

Every major owner and operator has Siemens trains


Challenges

Manufacturing locations –

Our trains are made in Germany and Austria Technical (design) expertise is often in Germany

Language –

Siemens business language is English Often technical spec’s and contracts are in German

Suppliers –

Relatively small pool of potential suppliers Technically complex and safety critical Often (historically) selected to suit requirements of train build not the aftermarket


Challenges

Supplier (558) locations – Fiscal year2012 (P's 1-5)

Country of Supplier EUR

Australia 9,930.30

Austria 16,298.43

Bahrain 16,369.63

Belgium 5,760.75

Czech Republic 279.33

Denmark 150,493.56

Finland 15,135.62

France 242,750.12

Germany 916,546.32

Hungary 2,385.17

Ireland 25,257.18

Italy 20,993.56

Netherlands 565.99

Spain 48,909.57

Switzerland 3,365,632.52

United Kingdom 37,030,834.34

Total 41,868,142.39


Challenges

Demanding customers and penalties for non–performance -

Our trains run 364 days/year We commit to making trains available to meet the timetables Maintenance activity is carried out outside of peak hours

Massive variation in terms of the fleets

One DMU fleet – all rest EMU’s Different suppliers and technologies on our trains


Opportunities

Size of our installed base gives us a critical mass

1508 vehicles and growing

Long term contracts

Our maintenance contracts last for between 2 years and 35 years! Over £1bn in order backlog based on existing fleets alone

Real growth prospects – opportunity to double in size

Eurostar vehicles in manufacture (160 off) Additional Cl 350 vehicles for TPE/London Midland (80 vehicles) Preferred bidder on Thameslink (1140 vehicles) CrossRail ITT recently issued (Siemens one of pre-qualified suppliers)


“Partnerships”

We tend to avoid using the term “Partnerships”

We focus on working together with our customers, suppliers and employees to delivery mutually beneficial long term benefits……

Two key elements of collaboration

First aspect is internal collaboration

Second aspect is how we collaborate with our suppliers

Communication is key to both…….

Infrastructure & Cities Sector, Rail Systems DivisionPage 17 March 2012© Siemens AG 2012

Procurement UpdateUnited Kingdom

Procurement UpdateGermany & Global

Procurement collaboration in Rail Systems

Procurement for maintenance and services

Best suppliers for Siemens

Internal collaborationAct together for growth


Organize communities of knowledge & experience exchange on specific procurement topics

Foster (cross-)regional pooling activities

Utilize transparency on global preferred supplier base & contract content

International procurement network Collaboration between UK and Germany

Example: Eurostar 2 Project Procurement

Managers for maintenance installed on both sides of the channel

Exchange of maintenance related procurement issues (e.g. life cycle cost, contracts, overhaul)

Joint interface to procurement activities during build phase

Overlook all material issues of the vehicle since vehicle is in plant (contracts, Annex SA,…)

Same approach would apply for

all future projects

USA

Brazil

Spain / Nertus

Portugal

Great Britain

France

Denmark

Poland

Russia

China

Australia

ThailandIndia

Czech Rep.

USA

Brazil

Spain / Nertus

Portugal

Great Britain

France

Denmark

Poland

Russia

China

Australia

ThailandIndia

Czech Rep.

>500 Mio € PVO is managed in RL’s procurement regions

HQ

REG

Procurement collaboration in Siemens Rail Systems


Maintenance and services for Rail Systems / Integration of build and maintenance projects

Maintenance and service aspects are key elements for sourcing decisions, e.g.

LCC Warranty and repair & overhaul

support Engineering / production capacity ToCo installed

Overview Key aspects

More of a focus on the aftermarket in sourcing decisions

UK and Germany are in close communication on key sourcing decision for both Eurostar and Thameslink

From an aftermarket perspective, we want to encourage the use of suppliers with a UK support network

Procurement for maintenance and servicesMajor focus within Rail Systems


Supplier day

RL UK holds an annual supplier days for it’s key strategic suppliers Approx. 40 suppliers in attendance Involves a cross-functional approach Focus is on sharing information and improving collaboration and

communication

Supplier day

RL UK holds an annual supplier days for it’s key strategic suppliers Approx. 40 suppliers in attendance Involves a cross-functional approach Focus is on sharing information and improving collaboration and

communication

International collaboration


“A Better Way of Working”Welcome…………….


Output / value add

Development of a portfolio of best-in-class suppliers

Continuous improvement of our supply chain performance

Focus on ToCo-installed

Transparency on performance in build and aftermarket projects

FPL Supplier Portfolio

Verbesserung derLieferantenperformance

SQE

Auditergebnisse

Massnahmen-verfolgung

Audit-Planung

Audit-Durchführung

SQE

Auditergebnisse


Audit-Planung

Audit-Durchführung


Audit-Planung

Audit-Durchführung

Ad-Hoc Audit aus akt. Risiken

Audit aus Lieferantenqual. / -Zulassung

Audit aus Zielvereinbarung nach Bewertung

Regelauditierung der FPL

Audit aus Lieferantenqual. / -Zulassung

Audit aus Zielvereinbarung nach Bewertung

Regelauditierung der FPL

Audit und FAI aus Projekten

Ensure Mandatory minimum

requirements for Suppliers

Define qualification scope

Monitor Supplier status for every

module

Corrective ActionsProcess interface to cross functional modules

Corporate self-assessments

Risk Evaluation

Operational Competence

Quality Competence

Supply Chain Management Competence

Procurement Competence

Business Collaboration

Balance of Power

Regional Presence

Commitment

Cooperation

Business Continuity

Business Environ-mental Factor

Contractual framework

Integration Compliance

Social and Ethical Responsibility

Compliance in supply chain of

supplier

Environment, Health and Safety

Legal compliance

Technology & Innovativeness

Financial Situation

Risk management @ Supplier

Quality Integration

Supply Chain Management

Integration

Procurement Integration


Operational Competence

Quality Competence

Supply Chain Management Competence

Procurement Competence

Business Collaboration

Balance of Power

Regional Presence

Commitment

Cooperation

Business Continuity

Business Environ-mental Factor

Contractual framework

Integration Compliance

Social and Ethical Responsibility

Compliance in supply chain of

supplier

Environment, Health and Safety

Legal compliance


Financial Situation

Risk management @ Supplier

Quality Integration

Supply Chain Management

Integration

Procurement Integration


Self-assessmentSelf-assessment

Supplier related quality

requirements 1)

Self-assessment

Supplier related quality

requirements 1)

Self-assessmentSelf-assessment

Export / customs

Requirements

Code of Conduct

Supplier relatedEH&S

Assessments 2)

Additional requirements

Supplier relatedEH&S

Assessments 2)

Additional requirements

0,98

1,0

1,08

1,04

Pre-ferred

Advanced

Registered

Approved

Sub-Standard

provisional approved

Pre-ferred

Advanced

Registered

Approved

Sub-Standard

Pre-ferred

Advanced

Registered

Approved

Sub-Standard

provisional approved

Supplier Qualification

Awarding processSupplier Classification

Factor

Supplier Award

Supplier Audit

crossfunctional Material Strategies

SupplierDevelopment

UK

UK

UK

UK

UK

2012

2012

Consistent approach to supplier management


Siemens has exciting prospects and great opportunities

We also have demanding customers and challenging competitors

We want to engage with our suppliers such that together we can gain a real advantage over our competition and delight our customers

We want to be number one together across all aspects of our working relationship – technical innovation, lowest total cost, comunication, reliability and availabily.....

We want you to be part of our future success

Closure & outlook


Andrew ListerHead of Procurement & Materials UK

Siemens plc Infrastructure & Cities Sector Rail Systems Division

United Kingdom

+44 1530 258 125

[email protected]

Q&A

infrastructure & cities sector, rail systems divisionpage 1 march 2012 © siemens ag 2012...

Documents

rail systems divisionpage

siemens trains

infrastructure cities

annum rail systems

image siemens ag

siemens uk

contents siemens

contract maintenance