Sustainability at Siemens Healthcare Diagnostics
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1 MassMEDIC EnviroFORUM 22-July-2010 Sustainability at Siemens Healthcare Diagnostics An Environmental Case Study
2 Presentation Topics The Siemens Company and Sustainability Key Performance Indicators Environmental Portfolio Products Application of Sustainability for a New Product: Diagnostics products Case study Key steps for success Linkage to site KPIs Summary and What s Next 2 Copyright 2009, Siemens Healthcare Diagnostics. All rights reserved
3 The Company People employees worldwide (70,000 in US) Products Global powerhouse in engineering products Financials Revenue of 77.3 billion and income of billion (cont d operations) Copyright Siemens AG All rights reserved
4 Siemens Sectors: Sub-divided into 15 Divisions Siemens Industry Energy Healthcare Industry Automation Fossil Power Generation Imaging & IT Motion Control Building Technologies Renewable Energy Oil & Gas Workflow & Solutions Diagnostics Osram Service Rotating Equipment Industry Solutions Mobility Power Transmission Power Distribution Diagnostic Products Corporation Bayer Diagnostics Dade Behring 4 Copyright 2009, Siemens Healthcare Diagnostics. All rights reserved
5 Siemens Healthcare Diagnostics (DX) A leader in the clinical diagnostics industry (in vitro) 3.3B in sales ($4.4B) Serving 30,000 customers in >110 countries Total Customer Solutions >15,000 employees 300M/yr R&D spend ($400M/yr) 129,000+ instruments installed Fiscal year 2007 data Page 5
6 Page 6
7 A focus on: Conservation of Natural Resources Environmental Portfolio Products Page 7
8 Environmental Portfolio Products Designation of products that are qualified to: Products and solutions that are at least 20% more energy-efficient than a baseline (e.g. average energy-efficiency of the installed base) >100,000 tons of CO 2 abatement/year (based on annually installed number of products & solutions of that type) > 25% of other environmental emissions (e.g. noise, NOx, SOx, COD, BOD, heavy metals, PM) are avoided compared to the baseline Systems and core component for renewable forms of energy Environmental technologies e.g. water technologies and air pollution control Page 8
9 Key Performance Indicators 20% reduction in electricity consumption 20% reduction in primary energy consumption 20% reduction in water consumption 15% reduction in waste 20% reduction in CO 2 emissions 20% of revenue from Environmental Portfolio Products All are normalized to cost of manufacturing Page 9
10 Applying Principles in Diagnostics Products For products: Established process for EHS in new product development process Target to make as many new products Environmental Portfolio products as feasible: Reduction in Cumulative Energy Demand for Instruments Reduction of other emissions for Reagents/Assays/Consumables For Sites: Targets for all KPIs (CO 2 emissions by extension of energy reduction) Prioritize manufacturing sites Link new product introductions to KPIs as much as possible at sites Page 10
11 Case Study Background: New product currently in development replacing an existing design Significant new design on instruments, limited changes in consumables Projected launch end 2011 Targets: At least 20% reduction in Cumulative Energy Demand (CED) Reduction in weight of system by at least 10% Reduction of system noise by at least 5 dba Project Questionnaire to drive EHS aspects Page 11
12 Product EHS Checklist- Current Results Page 12
13 Cumulative Energy Demand Page 13
14 Key Steps for Success Developed and piloted project questionnaire with R&D, Manufacturing (Mfg) and Program Management General training for key parties- pilot projects teams first, then broadly for R&D, Mfg, Program Management, EHS, Procurement Training for R&D (especially instrument engineering groups) on specific tools for determination of CED Boilerplate development for families of products- serve as starting points for easier application Incorporate Questionnaire as deliverable in Product Development Process for key stage reviews Drive on-going training to new users and general awareness Page 14
15 Activities at Manufacturing Site (In Process) Expected from design successes: Initial spike in ramp-up consumption of energy and waste generation without corresponding increase in cost of manufacturing System packaging reductions to aid in waste reductions Energy consumption improved in Quality Control operations and other system testing Ultimate increase in cost of manufacturing baseline by shifting from contract manufacturer to in-house Page 15
16 Summary & What s Next Sustainability for Siemens is a strategic business component and provides a competitive advantage Developed processes can be applied to diagnostics products Engraining into new product development processes will ensure ongoing success Creating boilerplates for like products will help to expedite usage and facilitate learning Improvements to be gained with increased usage- will be reviewing process after 1 year of full implementation Page 16
17 Siemens Healthcare Diagnostics Taking Diagnostics to the Next Level. Together. Thank you very much for your attention! Kevin Johnson Siemens Healthcare Diagnostics Director Global Environment, Health & Safety Systems Page 17
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