iris - international railway industry standard iris - international railway industry standard ......

IRIS -International Railway Industry StandardThe Global Quality Standard for theRailway Industry

IRIS Conference – May 21

Direction de

IRIS Conference May 2008

Presentation by Pierre Pelouzet – Purchasing Director

Direction des Achats 3

The SNCF purchasing in brief:

In 2007 :

More than 9 billions euros of purchase (excluded RFF tolls)

About 25 000 orders per year

Purchasing is the 2nd element of spend for SNCF :

A crucial tool to control the costs and the quality of its own services

General Supply

Railway and civil works

Energy

Services

Intellectual services

Rolling Stock

6 large purchasing segments

High Level Certification: a necessity for rail


High Level Certification: A necessity for rail

More and more worldwide sourcing which modifies strongly the relationship between SNCF and its suppliers, in particular concerning the product quality control.

SNCF’s will increase its ambitions and expectations for its suppliers, concerning their responsibilities and the continuous improvement of their performance.

Even if SNCF doesn’t require imperatively a certification for all its suppliers, a reliable certification is essential for the trust SNCF needs to have in its suppliers.

More and more worldwide sourcing which modifies strongly the relationship between SNCF and its suppliers, in particular concerning the product quality control.

SNCF’s will increase its ambitions and expectations for its suppliers, concerning their responsibilities and the continuous improvement of their performance.

Even if SNCF doesn’t require imperatively a certification for all its suppliers, a reliable certification is essential for the trust SNCF needs to have in its suppliers.

Purchasing at SNCF :Purchasing at SNCF :


The European railway market is also an open market for railways operators as SNCF. We are and we will be more and more in competition with other European operators.

Cost control and quality control of the purchased products are essential for the SNCF to be present on the European railway market.

The European railway market is also an open market for railways operators as SNCF. We are and we will be more and more in competition with other European operators.

Cost control and quality control of the purchased products are essential for the SNCF to be present on the European railway market.

The European context :The European context :

High Level Certification: A necessity for rail


The worldwide success of the ISO 9000 standards certification and its extension to all kinds of activities puts forward the “process quality” certification but too often forgets the “product quality” aspects.

Our experience and participation in the activities of certification bodies shows us the necessity to have specific requirements and auditors with high level competency in the railway field.

The worldwide success of the ISO 9000 standards certification and its extension to all kinds of activities puts forward the “process quality” certification but too often forgets the “product quality” aspects.

Our experience and participation in the activities of certification bodies shows us the necessity to have specific requirements and auditors with high level competency in the railway field.

The quality management context :The quality management context :

High Level Certification A necessity for rail


To associate more closely operators to the IRIS activities and functions to strengthen its dimension and its credibility.

To benefit from the operators’ knowledge of suppliers, to implement and maintain a real link between certification and quality recorded by the clients, on the suppliers’ performance and on the products supplied.

To be rigorous concerning the issuing and the withdrawal of the IRIS certificates.

To reinforce the operators’ confidence in the management and operation of the IRIS certification system.

To associate more closely operators to the IRIS activities and functions to strengthen its dimension and its credibility.

To benefit from the operators’ knowledge of suppliers, to implement and maintain a real link between certification and quality recorded by the clients, on the suppliers’ performance and on the products supplied.

To be rigorous concerning the issuing and the withdrawal of the IRIS certificates.

To reinforce the operators’ confidence in the management and operation of the IRIS certification system.

The SNCF expectations: that the high level certification sought by IRIS be confirmed and maintained

The SNCF expectations: that the high level certification sought by IRIS be confirmed and maintained

High Level Certification A necessity for rail

IRIS - International Railway Industry Standard The Quality Standard for the Railway Industry

High level certification: A necessity for Rail

First IRIS ConferenceBrussels, May 21st, 2008

Pierre AttenduChief Procurement Officer

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Bombardier Transportation

Bombardier Transportation has its global headquarters in Berlin, Germany with a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide. The Group offers the broadest product portfolio and is recognized as the leader in the global rail sector.

Workforce*

Countries withProduction Presence

Production Sites

Revenues**

Order Backlog*

31,485

21

43

$ 7.8 billion US

$ 30.9 billion US

* as at 31 January, 2008** year ending 31 January, 2008

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IRIS - The Quality Standard for the Railway Industry

We welcome, A common global system for the evaluation of Business Management Systems specific to the railway industry, that includes

– Sector specific requirements on the top of ISO 9001.

– An evaluation process to be performed by independent and approved certification bodies.

– A web-based information tool including information about audit results.

IRIS is not competing against any other Certification Scheme.

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Our Expectations towards the IRIS certification scheme

Stable process and improved interfaces by standardized requirements.

Reduction of cost of poor quality in the whole supply chain.

Less auditing by recognition of IRIS certificates.

Reliable Information about suppliers of the railway industry.

To build confidence and partnerships

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IRIS Commitment of System Integrators

The four System Integrators:

– Bombardier Transportation– Alstom Transport– AnsaldoBreda– Siemens Transportation Systems

Committed (2006-05-18) to recognized IRIS certificates and therefore to not initiate business management system audits at companies having a valid IRIS certificate.

project and/or product audits have different purposes and so they are not part of this commitment.

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Bombardier approach

BT fully support IRIS and is committed to obtain IRIS certification for its own sites– 8 BT sites are already IRIS certified with a score > 80%

(Spain, Germany, Sweden, China)– Further sites will follow in accordance with our global certification plan.

In terms of our suppliers:

– Preferred suppliers are expected to be IRIS certified by May 2009 and to grant access to their IRIS results.

– In this case: BT’s supplier evaluation and approval process will be reduced to topics that are not covered by IRIS, such as supplier performance, financial health, capabilities and capacities issues.

– Targeted suppliers not meeting the deadline will be considered as “NOT preferred supplier” in new contracts.

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Pierre Attendu

Tel: +49 30 98607 1400

Fax: +49 30 98607 2400

Mail: [email protected]

Web: www.bombardier.comwww.theclimateisrightfortrains.com

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Knorr-Bremse Group

A benefit for the railway industry! Knorr-Bremse,

Dr. Albrecht Köhler

Brussels, 21st May 2008

Knorr-Bremse Group

Brake- and System Control

EP Compact

MBS (Locomotives)Under floor assembly

Bogie EquipmentBrake Caliper

Air Supply

Oil free Compressor

Screw/PistonCompressor

Brake Systems for Rail Vehicles - Product Overview (Extract)

Hydraulics

Brake Caliper

Hydraulic Unit

Brake Disc

EP 2002

Eddy Current Brake

Magnetic Track Brake

Knorr-Bremse Rail Group – Product Overview Brake Systems (Extract)

Knorr-Bremse Group

Door Systems

Platform Door Systems

HVAC

Toilets / Electronics

Power Supply

Signaling / Power Supply

Braking Resistor

Disconnector

Knorr-Bremse Rail Group – Product Overview On-Board Systems (Extract)

On-Board Systems for Rail Vehicles - Product Overview (Extract)

Electronic Voltage Converter

Knorr-Bremse Group

Various factors which influence our systems and growing complexity of supply chain result in increasing challenge on these key elements

IRIS defines requirementsfor engineering and project management processes

A successful management system is absolutely necessary to ensure that well defined processes are in place and regularly improved

End User / Customer

Requirements

Environmental Influence

Track

Equipment Manufacturer Requirements

Interfaceof Products to

Customer Systems

Environmental Influence

Car

Main Influenceon Product and System Quality

IRIS supports Zero Defect Approach of Knorr-Bremse

Remaining major improvement areas for achieving Zero Defect:- Product Engineering- System Engineering- Project Management

Result Improved process and product quality leads to reduced quality costs

Knorr-Bremse Group

IRIS sets the standard for processes in the railway industry

IRIS – Railway standard for business processes

IRIS defines the requirements of the rail industry and fills the gaps of ISO 9001:2000

0102030405060708090

100General requirements

Documentation requirementsKnowledge management

Management of Multisite projectsManagement commitment

Customer focus

Quality policy

Planning

Responsibility, authority and communication

Management review

Provision of resources

Human resources

Infrastructure

Contingency plan

Work environmentPlanning of production realization

Customer related processesTender ManagementDesign and developmentPurchasing

production and service provisions

Production scheduling

Control of monitoring and measuring devices

Project management

Configuration management

First article inspection

Commissioning / customer service

RAMS / LCC

Obsolescence Management

Measurement, analysis and improvement

Monitoring and measurement

Control of nonconforming productsControl of nonconforming processes

Analysis of dataImprovement

max IRIS Rev01 min IRIS rev01 ISO

IRIS is driving topics which were neglected in the past (e.g. configuration management, obsolescence management)

Detailed questionnaire shows potentials for process improvements

Biggest gaps of ISO 9001 in product realization (e.g. project management,first article inspection,RAMS/LCC)

Knorr-Bremse Group

IRIS provides a high level certification and audit standardOne unique and high level international rail standard leads to upgrade of management system and improved processes

IRIS audit tool supports internal pre-assessments

Fair and objective evaluation by accredited certification bodies with experienced auditors familiar with the Railway Industry

Standardized and detailed audit report with maturity score is available

Elimination of comprehensive system audits by major system integrators

IRIS – Certification and Audit Standard

Result IRIS builds mutual trust with customers and supports preferred partnerships

Areas of Improvement:IRIS shall be accepted by all system integrators and operators

IRIS shall be joined quickly by all major suppliers in the rail industry

International presence of Certified Bodies is necessary

IRIS standard must not be weakened by ‘generous’ auditors

Knorr-Bremse Group

IRIS Certification in Knorr-Bremse Rail Group

IRIS certification 2007

IRIS certification 2008IRIS certification 2009

IRIS in Knorr-Bremse Rail Group

Commitment All relevant 23 Knorr-Bremse locations will be IRIS certified until mid of 2009

Knorr-Bremse is absolutely convinced about the benefit of IRIS

IRIS will be an important prerequisite for railway market access, specially for preferred suppliers

Knorr-Bremse Group

IRIS ConferenceBrussels, May 20/21 2008

German Railway Industry Association

Axel Schuppe, General Manager

Mai 2008 IRIS

The German Railway Industry Association

The current business situation

The value of IRIS

Conclusion and outlook

Mai 2008 27IRIS

was founded in 1877

represents the interests of manufacturers of railway technology

includes more than 110 member companies with about 40.000 employees in all fields of railwaytechnology (rail vehicles and accessory, mechanical and electrical components, railway infrastructureand electrification, information and communication systems, magnetic levitation systems, train control, signaling and safety systems)

works within 18 spezialised sections and working groups

represents its members interests towards the public, politics, customers, national and international authorities, institutions and organisations for the sustainable promotion of railway traffic

active participation in shaping the industries economical, technical, political and legal conditions

VDB ...

Mai 2008 IRIS

Organization of the VDB

Mai 2008 IRIS

SHW Weichenbau

GmbH

Mai 2008 IRIS



The value of IRIS


Mai 2008 IRIS

+5,5%9,1

9,6

4,5 4,54,65,1

0

2

4

6

8

10

12

2006 2007

Gesamt in Mrd. €Inland in Mrd. €Ausland in Mrd. €

Turnover in the German Railway Industry (VDB-Members).

Mai 2008 IRIS

10,6 10,7

4,44,9

6,2 5,8

0

2

4

6

8

10

12

2006 2007

Gesamt in Mrd. €Inland in Mrd. €Ausland in Mrd. €

+1,0%

Order intake in the German Railway Industry (VDB-Members).

Mai 2008 IRIS

Turnover and Order intake in the Railway Industryin chronological Order (VDB Members)

8,9

6,7

8,17,3

9,9 9,9

9,69,19,0

7,78,4

5,96,0

9,39,3

6,46,8

10,010,6 10,7

7,2

6,2

0

2

4

6

8

10

12

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Umsatz in Mrd. €

Auftragseingang in Mrd. €

Mai 2008 IRIS

Available Global Market for Railway Technology incl. Tracking & incl. Services in 2005*, Growth Rate till 2012.

2005: ~ 1,5 bn €~ + 3,5% - 3,7% p.a.

2005: 14,7 – 16,0 bn €~ + 3,0% - 5,0% p.a.

2005: ~ 2,2 bn €~ + 2,0% – 3,3% p.a.

2005: ca. 63,2 – 72,7 bn €+ 2% + 2% -- 2,5% 2,5% p.ap.a..

2005: ~ 4,5 bn €~ + 3,3% p.a.

CENTRAL & SOUTH AMERICA

WESTERN EUROPE EASTERN EUROPE

CIS

ASIA & PACIFICAFRICA & MIDDLE EAST

TOTAL

NAFTA

2005: ~ 3,7 bn €~ + 3,5% p.a.

2005: 14,3 – 19,0 bn €~ + 1,7% - 2,5% p.a.

2005: 22,3 – 25,8 bn €~ + 1,0% - 2,1% p.a.

References: F & S 2006, SCI 2006, Unife 2007, own calculations * average of the years 2003-2005

The Impulses of Growth:

• Environment and climate issues• Economical globalisation• Increasing fuel prices• Worldwide conurbations• Liberalisation and deregulation• Interoperability

Mai 2008 IRIS



The value of IRIS


Mai 2008 IRIS

Value of IRIS – some questions

How to keep this growth sustainable?

How to gain the best share for the Eureopean rail supply industry in the growing market?

Could IRIS be one part of the answer even for SME‘s?

Mai 2008 IRIS


IRIS encourages process innovation

IRIS contributes to an improvement of product quality

IRIS helps to save cost

IRIS (the IRIS approach) has the potential to become more than a rail supply industry

standard while becoming mutually recognized

by rail supply industry customers and operators

within EU certification procedures by NoBo‘s

for certification of maintenance workshops

Mai 2008 IRIS



The value of IRIS


Mai 2008 IRIS

The Rail Supply Indystry: A „Hidden Champion“ of the Economy

Verband der Bahnindustrie in Deutschland (VDB) e.V.With excellent and efficiant railway system solutions for moresustainable traffic on rail.

www.bahnindustrie.info

Knorr-Bremse Group

IRIS -International Railway Industry StandardThe Global Quality Standard for theRailway Industry

IRIS Conference – May 21

IRIS -International Railway Industry Standard

The Global Quality Standard for theRailway Industry

Friedrich Smaxwil

Member of the Executive Management Board of Siemens TS

GDP-growth of China and India (optional slide)

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

GermanyJapan

USA

0

10,000

20,000

30,000

GDP(in bn. USD)

China

India

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Source: GoldmanSachs

Rotem – from local low-end player to international player

Canada2005 40 EMU

India / Delhi2001 240 Metro

Syria2003 50 DMU

KoreaMonopoly in domestic market

Turkey2001 92 EMU

Taiwan1999 56 Metro

Philippines2000 72 EMU

GermanyOffer

Ireland2005 150 DMU

HungaryOffer

Bangladesh2003 11 Locomotives

Iran2004 120 DMU

Brazil2003 24 EMU

PC: Passenger CoachesDMU: Diesel Multiple UnitEMU: Electrical Multiple UnitLRV: Light Rail VehicleFigures indicate quantity of cars

2004 32 Metro

2004 80 Metro

2005 34 LRV24 DMU

2006 96 EMU

Greece2002 126 Metro

SpainOffer

Hong Kong1998 104 Metro

200020012002200320042005200620072008 2008 75 Double deck - PC

2006 104 EMU (SEPTA)131 Double deck - PC

USA2004 32 DMU (TTA pending)

New Zealand2007 70 EMU2007 35 EMU

Saudi Arabia2003 17 PC

2007 90 Metro 156 Metro

European manufacturers still outpace Asian companies...

System integrators with highest sales volume in railway sector by regions (sales in billion EUR)

Source: SCI Verkehr, VDB, Wettbewerbsbericht Deutsche Bahn

European suppliers

USsuppliers

Asiansuppliers

Russiansuppliers

16.3

4.6

4.2

1.2

Alstom + Ansaldo Transport + Bombardier + Siemens

GE + Trinity

CSR + CNR + Kawasaki

Trans-mash

European manufacturers can maintain their lead with

Stabile, efficient processes

Optimal meshing of processes between suppliers and system integrators

IRIS plays an important part in this process

In short: IRIS increases the chance of gettinga good product at a competitive price

Secure market advantages with IRIS

Asian rail technology in the world market

Growing global involvement of Asian system integratorsGrowing interest of Asian railway subsystem suppliers in IRISAn opportunity to show a company’s areas of competence

Canada2005 40 EMU

India / Delhi2001 240 Metro2007 90 Metro

156 Metro 2006 LRT Colombo

Syria2003 50 DMU2005 Track Rehab

KoreaMonopoly in domestic market

Turkey2001 92 EMU 2005 34 LRV

24 DMU2006 96 EMU

Taiwan1999 56Metro2000 High-Speed2003 321 metro2005 High-Speed

Philippines2000 72 EMUIndonesia2005 Java Turnkey

GermanyOffer

Ireland2005 150 DMU

HungaryOffer

Bangladesh2003 11 Locomotives

Iran2004 120 DMU

Brazil2003 24 EMU2004 80 Metro

Greece2002 126 Metro

SpainOffer

Hong Kong1998 104 Metro2004 32 Metro

USA1997 400 metro1998 212 metro2002 680 metro2004 32 DMU (TTA pending)2004 104 EMU (SEPTA)

131 Double deck - PC2008 75 Double deck - PC

New Zealand2007 70 EMU

35 EMU

Saudi Arabia2003 17 PC2006 North-SouthDubai2005 Monorail

JapanKey player in domestic market

Great Britain2005 28 EMU

China1998 80 locos

480 EMU300 metro

Singapore1998 66 metro

Caribbean2007 LR Trinidad

Thailand2005 40 DE Locos

Nigeria2006 Lagos Rail

Subsystem suppliers

IRIS reduces the risks of global sourcing

IRIS simplifies the process and makes it less expensive

Asian providers with IRIS certification become much morelikely potential business partners

IRIS opens up global sourcing in Asia

File: IRIS

来自亚洲的竞争 :

对欧洲制造商的挑战 ?

(Asian Competition : a challenge for european manufacturers?)

Pierre Sainfort – COO Faiveley

File: IRIS

ShijiazhuangQingDao

DatongBeijing

Seoul

Hong Kong

Shanghai

Bangalore

BaddirDelhi

Asia:

before being a challenge with competition, is a huge opportunity • Domestic market (China , India)• Overseas Strategy & Ambition of local Car Builders (China, Korea)

Faiveley Air Conditioning since 1994Faiveley Brake Systems since 1995Faiveley Platform Screen Doors since 1999Faiveley Passenger Access Doors since 2002Faiveley Couplers since 2007

File: IRIS

Asia: a cultural challenge

File: IRIS

Asia: a stability challenge (China, India)

Extreme contrasts

Human Ressourcesfor urban citizens, english speaking, educated: salary increase

+10/20%/year – loosing people @ +30% (purchasing, quality, SQA…)

Financeexchange rate evolution vs €,$volume management > profit management > cash management

Quality (base=FT domestic suppliers)poor results local supplier quality auditpoor ppm level , high NCR, multiple FAI,mandatory 100% Incoming Inspection before use/shipment

File: IRIS

Asian Competition: a true challenge

Cultural ChallengesStability Challenges

BUT

Very Fast Learning,High Skills and Competencies,Future Very Active Players,

File: IRIS

IRIS - Seminar

Foucauld de LAUZON

AFAQ AFNOR Asia

[email protected]

Standardization process

European (CEN)and International (ISO)

standards

International Relations

NORMALISATION

Standards & Books sales

Information & IntelligenceSector schemes and

Trades approach

AFNOR on-line shop

Assessment & Certification

QSE Management SystemsServicesProducts

CompetencesLabels

Training

QHSEServicesProductsMetrology

Audit

27 500 experts 124 000 items 10 000 trainees 65 000 certified sites

59

The railway industry in China

Increasing of outsourcingin China

Railway development in China

IRIS awareness in China

From “ IRIS … what is IRIS ? ”

To “ How do I get IRIS certificate ? ”

Commitment of major purchasersMarket open and curious about new initiatives

Companies looking for recognition from outside China

IRIS …. a large range of questions

QMS Quality Management SystemIRISAuditingRAMSLCCProject ManagementProduct testingProduct certification…

May 2008 …middle of a 3 keys steps for IRIS

2007 .. .. awareness

2008 .. .. implementation

2009 .. .. certification ?

File: IRIS

Asian Competition, a challenge for European

manufacturers

José Taborda21st May 2008

TRANSPORT

- - P 65

The world we know…

- - P 66

The world… railway oriented !

- - P 67

ALSTOMChina Ltd. Holding

Employees 112

ALSTOM Transport in China

Holding

In M Euros

New JV

Subsidiaries and joint ventures

YONGJI:Motors

Employees 21

Hong-Kong:Signalling

Employees 47

SATCORolling StockEmployees 271

CASCO:Signalling

Employees 313

SATEE:Traction

Employees 70ATSLServices

Employees 270

QINGDAO:Dampers

Employees 31

Transport

- - P 68

Boost purchases in Emerging markets

Alstom Transport Purchases

96.8%

2006/2007

2.9% 70%

2009/2010

15%15%

0.4%

Western Countries East Europe Countries ASIA

15 Asian suppliers to be part of LP150 program

- - P 69

IRIS is at the heart of Suppliers Development

Sourcing

SQA

TechnicalSupport

- - P 70

IPOs in Asia

Sourcing

SQA

TechnicalSupport

China Sourcing reinforcementsince May 2007

China Sourcing reinforcementsince May 2007

India Sourcing Office

Jan 2008

India Sourcing Office

Jan 2008

- - P 71

Alstom Transport Approach

Communication to Suppliers Panel− Standard letter sent on 28/08/2006 to Alstom Transport

Panel Suppliers requiring certification by end of 2008− Strong follow up on Key Suppliers by Commodities

From January 1st 2009, IRIS Certification will be a discriminatory factor

All suppliers (including Asian) will follow the same program

- - P 72

Benefits of IRIS in Asia

Benefits will be the same as in Europe– Quality will increase across the entire supply chain– Evaluation and approval of equipment manufacturers will

become more efficient– Cost for manufacturers and suppliers will decrease– Comprehensive data and its accessibility will improve

Moreover

– Clear Iris requirements will enable Asian supplier to be compliant sooner

– A certified Asian supplier base will push to industrial excellence the global base

– Asian supplier quality systems will become legitimate

- - P 73

Improvement for IRIS deployment in Asia

Issues

– Little knowledge of the IRIS standard in Asia by our Suppliers (except for European subsidiaries)

– Little Certification bodies competent resources available in Asia. That does not allow the right speed in the deployment of this new standard

Suggestions

– UNIFE/IRIS event in Asia: China and India

– Certification Bodies in Asia posted on IRIS Website

- - P 74

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