Schneider Electric Integrated Management System (IMS) Management Systems for Enterprise Compliance

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1 Schneider Electric Integrated Management System (IMS) Management Systems for Enterprise Compliance NAEM 2015 EHS Compliance Excellence Conference May2015 Atlanta, GA 1

2 Agenda > Introduction to Schneider Electric > IMS project benefits > Overview of our MS Landscape (Before & After) > Project approach > Lessons learned Confidential Property of Schneider Electric 2

Schneider Electric, the global specialist in energy management and automation 25 billion FY 2014 revenues ~5% of revenues devoted to R&D ~170,000 people in 100+ countries Diversified End Markets FY

3 Schneider Electric, the global specialist in energy management and automation 25 billion FY 2014 revenues ~5% of revenues devoted to R&D ~170,000 people in 100+ countries Diversified End Markets FY 2014 revenues 1 Balanced Geographies FY 2014 revenues Non-residential & Residential Buildings 33% Data Centers & Networks 14% Industrial & Machines Utilities & Infrastructure 27% 26% 25% North America 28% Western Europe 19% Rest of World 28% Asia Pacific 1 Estimated at the end of 2014 Confidential Property of Schneider Electric 3

4 Some of Our Brands Note: no EPC selected EPC commercial model will be clarified in a second stage Waiting clarification considered as Targeted Account but no change in existing commercial coverage 4

5 Some of Our Customers Oil & Gas Mining, Minerals, Metals Water & Wastewater Food & Beverage Note: no EPC selected EPC commercial model will be clarified in a second stage Waiting clarification considered as Targeted Account but no change in existing commercial coverage 5

6 Schneider Electric Integrated Management System The MS components include: ISO 9001: Quality Management Systems ISO 14001: Environmental Management Systems. + + OHSAS 18001: Occupational Health and Safety Management System. ISO 50001: Energy Management System + IMS ISO9001 ISO14001 OHSAS ISO50001 The scope includes Global Supply Chain Manufacturing & Logistics Business Units R&D & Design Centers Operations Sales, Service & Customer Support

7 Main Project Drivers & Key Benefits > Global efficiency, consistency & simplification > Global platform to deploy global initiatives effectively > Facilitate global best practices sharing > Facilitate the integration of mergers & acquisitions > Cost savings through reduced auditing (>30%) > Reduced audit burden Confidential Property of Schneider Electric 7

8 Cost Savings Confidential Property of Schneider Electric Source : 8

9 SHE&Q Management System (Before) BU Operation G Region Entities Power Energy Building ITB* Industry EMEAS NAM APAC APAC NAM EMEAS E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 Quality ISO9001 Environment ISO14001 AsiaPac IMS H&S OHSAS18001 Note: =Quality Certification (ISO 9001) =Environment Certification (ISO 14001) =Safety & Health Certification (ISO 18001) * Includes factories Confidential Property of Schneider Electric 9

10 Integrated Management System (After) BUs Operations G Regions Entities Partner E1 E2 Indust. Energy ITB G. Sol. NAM Global China China EAJP India SAM NAM EMEA-P EMEA-E CIS E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 Quality ISO9001 Environment ISO14001 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q E E E E E E E E E E E E E E E E H&S OHSAS18001 S S S S S S S S S S S S S S S S Energy ISO50001 Note: Q=Quality Certification (ISO 9001) E=Environment Certification (ISO 14001) S=Safety & Health Certification (ISO 18001) Confidential Property of Schneider Electric IMS: Under G Leadership IMS w ISO Covering All entities Audit: Sampling of entities in 3 yrs Total Cost for 3 yrs: < 1/2 of normal 10

11 Certification Integration / Globalization Good Practices * CB = Certification Body Source : 11

12 IMS Progress & Plan NAM 36 EMEA TBD CIS TBD Phase III (start 2015/9) Phase II (initiated 2014/9) SAM 24 India* 32 China 30 AP Pilot (Phase I): By 2015/5: 85 entities By 2015/7: 95 Entities EAJP* 33 Confidential Property of Schneider Electric *including: - India Ops - EA Ops (6) 12 # of Total Entities may change as we may add/close entities later

13 Vision One Global Schneider Electric IMS One Global IMS Three Key Components No of Certificates* New Organization (2013) G Manufacturing Sites Logistic Centers G G (First Step) Business Units Research & Develop Sites Design Centers BUs All BUs (Second Step) Operations / Zones / Countries Customer Care Centers Service Organizations Solution Centers Commercial Offices Ops All Ops (Third Step) * Note: No. of certificates are estimated with 9001, and together maybe added later. 13

14 IMS Central Office G Top Management Team: Management Representative of QMS: Management Representative of EMS: Management Representative of SMS: Project Owner: EVP of G Senior Vice President, Global Customer Satisfaction & Quality Vice President, Group Environment Vice President, Global Safety Vice President, Global Quality System & Competency Process Owners: 1) Customer Satisfaction & Loyalty Development, 2) Customer Issue to Prevention, 3) Competency Management, 4) Continuous Improvement, 5) Management System, 6) Safety, 7) Environment Rep. of Global IMS Rep. of Global E&S Rep. of IMS China Rep. of E&S China Rep. of IMS India Rep. of E&S India Rep. of IMS EAJP Rep. of E&S EAJP Rep. of IMS NAM Rep. of E&S NAM Rep. of IMS SAM Rep. of E&S SAM 14

15 IMS Internal Agreement The IMS Central Office and entities shall sign an internal agreement before certification commencement. This agreement shall signed by Entity Management, IMS Region Representative, and IMS Global Team. When to sign this agreement: An entity joins the IMS The start of another 3 year circle Change of certification type Agreements to be maintained in IMS Database 15

16 Lessons Learned so far! > Communication (early and often) and Leadership is key >Wider engagement in pilot > Integrate systems at the plant level early > Standardize as much as possible >Thorough advance planning of audit process Confidential Property of Schneider Electric 16

17 Unexpected Benefits so far! > Quality team is leveraging best practices from E&S > Energy team jumped on the bandwagon > Standardization moving along rapidly > More focus on compliance auditing Confidential Property of Schneider Electric 17

Supplier Guide Book. Collaborate, perform, grow together

Supplier Guide Book. Collaborate, perform, grow together Supplier Guide Book Collaborate, perform, grow together Message from our Chief Purchasing Officer Dear Supplier, DK Singh CPO Schneider Electric We are pleased to publish the Schneider Electric Supplier