Assemblies Overview for RMT Car Builders in USA. February 2014

Transcription

1 Assemblies Overview for RMT Car Builders in USA February 2014

2 Agenda 1. General Cable Assemblies Business Overview 2. Overview of Piedras Negras, Mexico 3. Overview of Altoona, PA 4. Supply to the Transit Market 5. Discussion of Business Opportunities

3 3 Assemblies Value Proposition Assemblies Value Proposition General Cable s primary business is as a Wire and Cable manufacturer A. Direct sales to Transit Market OEMs, reducing distributor mark-up 1. Opportunity to support the market with GC products 2. Carries inventory and has a commitment to high service levels B. ISWH is positioned to offer additional Value Added Services 1. Co-development of engineering cable content 2. Connector and Harness assembly capabilities 3. Supply Chain management for Harness deliveries JIT General Cable is a wire and cable manufacturer with a wide range of wire and cable products and a large global footprint. Additionally, General Cable maintains a wide range of value-add assembly capabilities to service OEM customers unique needs.

4 Piedras vs. Altoona Mix High Complexity Harnesses have increased labor content versus cable. Quality control is paramount. OEMs expect highly detailed and structured systems. The volume is low, but complexity is high, requiring high engineering and integration support. Wire and cable supply is important, but access to connectors and low labor costs win business. Manufacture all of our Buy American products from Piedras using US-content cable and connectors. Higher Complexity Piedras Mix Raw Material (Cable and Connectors) represent nearly 75% of total cost structure Vertical integration of cable is important to manufacture of lower mix, higher volume assemblies. Labor cost is offset by transportation of heavier cables into Mexico. Can transfer technology from Piedras to Altoona to meet Buy America requirements for final assembly in the US. Low Complexity Altoona Mix Vertical Integration of wire provides customers with a 1 stop shop! 4

5 Piedras Negras Focus High Mix, Lower Volumes Field Support /Sales Engineering Expertise Supply Chain Management Assembly Manufacturing Leverage ISWH Value creation model to Transportation, Military and Medical markets Entrench with key, profitable customers and lull them to sleep with service! 5

6 Piedras Negras, Mexico Facility General Cable s Piedras Negras Assemblies business serves a broad market basket, servicing everything from high complexity assemblies to kitted packages for OEMs doing field installations. This presentation gives an overview of the core capabilities of our assemblies business.

7 Piedras Negras Facility 75,000 Sq. Feet of Mfg. Space Room for Growth Configured for Flexibility Cellular layout, single-piece flow Manufacture Medium to High Complexity Wiring Harnesses and Assemblies Dedicated prototype shop for quick turnaround and design support Small to large gauge wire processing ISO 9001, IRIS,UL & CSA GCC Piedras started in 1990 Committed to Safety, Quality, Service, and continuous Improvement Safety ( Consequence thinking ) Lean Manufacturing Six Sigma Manufacturing Excellence principles Integrated Manufacturing Planning Systems HFA, MRP, ATP Kanban Supplier Managed Inventory

8 8 Our Plant s Best Asset - People Hourly Direct 179 Associates Hourly indirect 40 Associates Salaried 42 Associates (50% in Technical Design/Prototype) Total 261 Associates LeanSigma Black Belt 1 LeanSigma Green Belt 9 Lean technician 18 As a result of the People, Processes, and Lean/Six Sigma Program we ve won Industry Week s Top 10 North American Plants Award

9 Plant proficiencies Lean Manufacturing Environment Cellular Layout/Single piece flow High Mix/Low Volume Production Layout change flexibility Prototyping Dedicated prototype staff Autocad/Pro-E capabilities Engineering Support Multi-functional transition teams Documentation review Compatibility verification Design support Reverse Enginnering Project Management

10 Assembly Overview Our products are medium to highly complex wire harnesses and assemblies Typical products include either assemblies with high cable content or complex harnesses with high labor content

11 Assembly Overview Vertically integrated with our capabilities to design and develop application specific cables along with connectorized solutions. Leading manufacturer of military, transit, marine & commercial wire & cable. Advantage of technical knowledge in development and manufacturing of all types of cables Can support applications where Made in USA wire harnesses and assemblies are required and can offer LCC price sensitive applications Technologies: Connectorized, mechanical, sonic welding, coaxial, power, data (flat ribbon, multi-conductor, high pair count), electronic, multitechnology, fiber optic, molding, and over-molding General Cable seeks business with entities that require highly engineered turn key designed cable & assembly solutions

12 Core Technical Capabilities Product Expertise:: 15 years in point to point data cable assembly including ribbon cables, D-sub, circular, and patch cord/rj45 type assemblies for the medical and other OEM industries 12 years in large multipoint harness construction for the transit, crane/lift, mining, and other specialty vehicle industries. Manual: Hand cut and strip of cables, crimp application of terminals, lugs, connectors, labeling on very simple to very large multipoint harnesses Machine: Operation of automatic cut/strip/crimp centers, cutting and overmolding machines. Continuous Improvement: Employees are certified on industry best practices, cross trained for multiple skills, and encouraged to participate in and suggest employee led improvement initiatives as well as Blackbelt/Lean Sigma projects. Assemblies Battery / Automotive power Coaxial D-Sub / circular Patch Cords RJ45 Plastic Fiber Optic Ribbon Cable PVC Over Molding Harnesses Hot Stamp circuit print Ink jet circuit print Braided sleeve Ultrasonic welding (splice)

13 Core Competencies Behavioral Relationship Management Engineering Expertise Quality Standards Vertical Integration Technical Product Expertise Point to point data cable assembly Large multipoint harness Workforce expertise Manual operation Machine operation Continuous Improvement

14 Broad Customer base 14

15 Altoona, Pennsylvania Facility Location Number of Associates Union / Non-Union Certifications / Registrations Facility Size Altoona, PA (1988) shifts 5 days IUE Local 123 ISO 9001, ISO/TS 16949, ISO ,000 sq. ft. Key Products / Processes Aftermarket Ignition Sets Major Awards Industry Week 2003 & 2009; GCC Best Plant 2003 & 2011 Current Volume 6.1 Million Sets AM; 8.7 Million Delphi Single Leads OE Ignition Single Leads Power Cables Onsite Distribution and Warehousing Major Customers Major Suppliers Business Mix AutoZone, Advance, O Reilly, Bosch, CarQuest, Delphi Lincoln (Wire), LCI (Boots/Insulators), CEP (Terminals), PJC (Boots/Insulators), Jamak (OE Insulators) 79% Aftermarket, 20% OE, 1 % New Business 15

16 16 Plant Background Constructed in 1956 by Sylvania Sylvania sold facility to Carol Cable in 1988 Carol converted facility for assembly of ignition sets, booster cables, and extension cords Plant has 200,000 sq. ft. of manufacturing and warehouse space on two floors While traditionally an ignition wire set manufacturer, Altoona is diversifying towards other value-added assemblies.

17 17 Altoona, PA Focus Higher Volume, Lower Mix Wire Manufacturing Field Support /Sales Engineering Expertise Supply Chain Management Assembly Manufacturing

18 Awards External 2003 and 2009 Industry Week Best Plants ABCD Alex Notopoulus-Altoona Business Firm of the Year 2012 Professional Recyclers of PA Pennsylvania Waste Watchers Award Customer O Reilly-Performance Vendor of the Year Honeywell-Outstanding Supplier of the Year Delphi Pinnacle Award for Supplier Excellence AutoZone Extra Miler Award Internal 2003 and 2011 General Cable Plant of the Year Most Customer Friendly Quality Plant of the Year Several Years- Best Service Highest RIP Turns (Best Year 85 Turns) Perfect Safety Award Plant Productivity >3% 18

19 19 Continued Performance and Improvement Safety Journey-0.0 TRIR 2013 Average 98.3% service level over the last five years Speed & Cycle Time 0 CCPs and 853 DPMU in Quality Plant of the Year Strong Business Partners

20 20 Our Associates 225 Associates (32 Salary) Associates have an average of 12 years Ignition Set Manufacturing Experience Associates cross-trained, flexible Operator-led work environment International Union of Electronic, Electrical, Salaried Machine and Furniture Workers of America (IUE), Local Contract thru March 26, 2015 Competent, driven salaried associates

21 21 In House Machinery Cutting / Terminating Six Artos CS-9 batch cutters Three Artos CS-600 linear cutters (linked to assembly cells) Two CS-326 bench-top linear cutter (linked to FB/K cell) Two MTX-10 linear cutters Assembly Twenty-One assembly cells Various semi-automated insulator application equipment, designed in-house Auto-booting Automated lines that cut-strip/terminate and auto-boot insulators and shields Packaging Semi-automated four station packing line, linked to 2nd floor robotic palletizer by elevator Manual off-line pack stations (Smart Tables)

22 New Business-Cable Assembly Previous Assembly Experience Amp Wire Harnesses Booster Cables Battery Cables Wesco Harnesses Extension Cords Primarily Ignition Sets Since 2005 New Customers Include: JLG Lift Truck Assemblies GETS Locomotive Assemblies Liebherr Heavy Equipment Assemblies Aggreko Temporary Power Assemblies Raytheon Military Applications Emerson Process Controller Assemblies Alstom Transit Car Assemblies 22

23 Wide Range of Assembly Types for Transit 23

24 24 Complex Transit Assemblies Work with all quality connector manufacturers in the transit industry.

25 Transportation Specific Customer Base

26 Why do Transit Customers Partner with General Cable? Excellent quality systems DPM near Six Sigma levels Exceptional on-time delivery metrics Strategic alliances Experienced Support Teams E-commerce capabilities EDI Mygeneralcable.com Vertical integration Follow the Wire Bulk Purchases Price Low cost country position -Labor Long term supply agreements Inventory Hold FGI for Key Customers Deliver Just in Time (as required) Multiple Locations Piedras Negras Buy American uses US cables & connectors Altoona, PA Buy America assemblies Finished in US

27 What about Bombardier Trans? Economics and pricing always a concern at BT! Bulk Price has been a strong consideration on programs! Total cost of ownership not considered as part of purchasing s control. Get lowest cost of production from an integrated supplier (GCC) Shift inventory costs to suppliers, preserving cash flow Freight cost and administrative burden Political pressure associated with internal harnessing bigger than total cost. Solutions from General Cable not considered, despite our supplying all of the other suppliers of BT (Vapor Rail, BT Propulsion, others). Market Share and Profit are impacted : Outsourced cable assemblies to Mexico must be moved back to America for Buy America. Increased cost and supply chain coordination will be needed. Possible loss of #1 Position in North America. General Cable s Assemblies Proposals have saved other companies Up to 40% from internally supplied assemblies. Would you rather count pennies or save dollars? 27

28 Next Steps? How do we work together to create value? Bulk cable pricing will continue to increase year over year. GCC is barely able to maintain its consistently low pricing via efficiencies. Material content is high; labor content is low; compounds price fluctuates. Inventory required to service at expected levels. Admin to BT is high. Value creation for us comes from reducing BT overall cost. Assemblies manufacture at BT Sahagun is higher than ours. GCC assemblies present low cost options from Mexico and the US. GCC has US and Mexico design teams to support cost reductions. We invite you to visit our IRIS certified Piedras Negras, Mexico facility for a benchmarking exercise. We are scalable and ready to take on engineering and manufacturing challenges with our workforce there or in Altoona, PA. We wish to be BT s one stop for Wire and Assemblies! 28