at thyssenkrupp Brief overview

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1 at thyssenkrupp Brief overview September, 2017 Mrs. Manuela Oetiker, MRO-Buyer Global, thyssenkrupp Presta TecCenter AG Mr. Muersel Inan, Process Manager Supply Chain, thyssenkrupp AG

2 Agenda 1. thyssenkrupp at a glance 2. Digital transformation 3. ecl@ss Project at tk Camshafts 2 Sep ecl@ss-kongress 2017 Köln

3 You think this is thyssenkrupp? 3 Sep ecl@ss-kongress 2017 Köln

4 thyssenkrupp Business Areas (BA) Components Technology Elevator Technology Industrial Solutions Materials Services Steel Americas Steel Europe Exampl e (tk BA) Industrial Solutions Marine Systems Process Technologies Ressource Technologies System Engineering Business Unit 1. Fortgeführte Aktivitäten (nach Rückgliederung von Steel Americas) 2. Bereinigt vor Konsolidierung 4 Sep ecl@ss-kongress 2017 Köln

5 Agenda 1. thyssenkrupp at a glance 2. Digital transformation 3. ecl@ss Project at tk Camshafts 5 Sep ecl@ss-kongress 2017 Köln

6 The environment for digital transformation is gaining pace Connection & communication via standards. Mobile Computing Internet of Things Technology push Hybrid IT & Cloud Computing AI, Algorithms Big Data Concerned object s connect & communicate as much as possible independence/autonomy, supported by intelligence algorithms and standards. Robots will collaborate with humans in the future 6 Sep ecl@ss-kongress 2017 Köln

7 and at least to new business models 5. Product-Service-System (System of Systems) 4. Product system 1. Product 2. Smart product + 3. Connected smart product + + Planter Farm machinar y Harvester Farm machinary Weather data system Agro management system Seed optimizatio n system Plows Irrigation system The borders of industry sectors disappear and new business models appear 7 Sep ecl@ss-kongress 2017 Köln

8 Standards are essential part of digitalization Key success factor for digitalization Standardisation Digitalisation In the past, industry was focused on productivity In future, the connection of value chains will be the key of success Digitalization requires a new principles of collaboration and much more cross company/-border information exchange. More standards and intelligence algorithms required! = Part of 8 Sep ecl@ss-kongress 2017 Köln

9 Status Quo and challenges In the thyssenkrupp group the standard is already used in some areas. The depth of use (w/wo attributes) is different. thyssenkrupp AG see potential for further expand of usage of the standard. Especially within the current strategic program for data and process harmonization ( daproh ). thyssenkrupp is an ordinary member with seat in the ecl@ss steering committee. To enhanced the ecl@ss standard, several activities are triggered and/or supported by thyssenkrupp like Additionally to the membership, thyssenkrupp provide resources in various ecl@ss working groups to provide the ecl@ss association Thyssenkrupp AG ( dep. CF/GPI ) had a knowledge exchange with Siemens to find out if there any cooperation / collaboration options in context of the electronic exchange of product information by using a standards as a common language for product descriptions. Active Role within the reorganization of some ecl@ss areas ( Steel products ) Challenge from strategic view: Effort and costs of a global introduction is very high and currently does not correspond to the expected benefit ( several million material master records across all Business Areas ). Iterative approach is preferred (starting with standard- and purchasing parts) via PoC ( Proof of Concept ). Due partly inharmonious product range, like submarines to Steel Coils, different business models and branches, calculation of a global business case with figures very difficult. Culture eats strategy for breakfast, Peter Drucker 9 Sep ecl@ss-kongress 2017 Köln

10 As an widely accepted and mature standard, can provide a tk wide harmonization of product information while keeping required diversity BU BU Supplier BU BU supplier Mat No: A123 Desc: Motor P: 600W U: 230V I: 0,5A Mat No: BX34 Desc: Aggregat P: 600W U: 230V I: 0,5A Mat No: L-568 Desc: Engine P: 600W U: 230V I: 0,5A ecl@ss: P: 600W U: 230V I: 0,5A Different classifications and descriptions of the same object ONE global product classification and description Enablement for seamless internal and external information exchange 10 Sep ecl@ss-kongress 2017 Köln

11 Agenda 1. thyssenkrupp at a glance 2. Digital transformation 3. ecl@ss Project at tk Camshafts 11 Sep ecl@ss-kongress 2017 Köln

12 Project at tk Camshafts Who are we? The management of thyssenkrupp Camshafts Patrick Buchmann Frank Altag Peter Wiesner Chief Financial Officer at thyssenkrupp since 2010 Chief Executive Officer at thyssenkrupp since 1999 Chief Operating Officer at thyssenkrupp since Sep Köln

13 Project at tk Camshafts how did we start? at tk Camshafts came from a project started in 2010 for the reduction of the budget commitment with the aim of eliminating duplications and slow-moving items to optimize our warehousing. In 2011 we decided together with tk Camshafts IT to solve the challenge with ecl@ss and in the year 2012 the system has started to be productive in europe. In the year 2014 we decided to roll out ecl@ss world wide that means also in our locations in the USA and China. Than in 2017 we started to roll out the project in China and USA and implemented ecl@ss at the 12th of august Sep ecl@ss-kongress 2017 Köln

14 Project at tk Camshafts 4 Rooms of Change 14 Sep ecl@ss-kongress 2017 Köln

15 Questions?? 15 Sep Köln

16 Contact map Name: Company: Location: Position: Manuela Oetiker thyssenkrupp Presta TecCenter AG 9492 Eschen, Liechtenstein MRO-Buyer Global Name: Company: Location: Position: Muersel Inan thyssenkrupp AG Essen, Germany Process Manager Supply Chain & Procurement 16 Sep Köln

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