Take Control of Your Plant with a Custom Maintenance and Support Strategy Sajeeve Kalarickal, Siemens Manufacturing in America March 14-15, 2018

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1 Take Control of Your Plant with a Custom Maintenance and Support Strategy Sajeeve Kalarickal, Siemens Manufacturing in America March 14-15, 2018 Unrestricted Siemens 2018 usa.siemens.com/mia

2 Before we start A Penny for Your Thoughts At the end of the session, share your feedback via MiA App - and get a chance to win tickets to the Detroit Tigers baseball game!

3 Fast changes can become a threat or an opportunity 1913

4 Fast changes can become a threat or an opportunity Pope Benedict XVI April 19, 2005 Pope Francis March13, 2013

5 Service Requirements Maximize inventory needed to ensure: 98% online availability during normal conditions Challenge Immediate need for repairs on drives and motors Challenge Don t know what you have where you have it and if you still need it? Challenge Need to reduce inventory cost Challenge Large system critical operations and need onsite support Challenge Have critical systems and need guaranteed parts Challenge Need remote technical support

6 What does downtime mean to your plant? 1 = 1 minute of downtime 22,000 = $22,000 1,320,000 = $1,320,000 / hour

7 Cost of downtime Thursday, , 17:02 Powertrain Paint Shop Final Assembly Breakdown in VW Factory Sheet metal press broken: VW Production lines for Golf have to pause for days Press Shop Body Shop Once again bad news for the VW parent plant in Wolfsburg: The damage to a metal press forces the production of the bestseller VW Golf to a standstill. Survey of 101 manufacturing executives in the automotive industry Downtime Costs: $22,000 per Minute / $1.3M per Hour As a result, the Golf Production will be suspended for Tomorrow (Friday) as well as on Monday and Tuesday... Source (translated): Source:

8 Staying competitive in the future from service perspective... Optimizing plant availability Reducing total cost of ownership Taking advantages of Digitalization

9 Transparency of your assets is the prerequisite for optimization Product lifecycle forecast Spares availability 12% 18% 3% 64% 1% 2% Unknown order number Item discontinued, no successor defined; repair or replacement may be possible to a limited extent Availability horizon <1 year Availability horizon 1 to 2 years Availability horizon 2 to 5 years 61% 12% Unknown order number 18% 1% 8% Items no longer available (Repair or replacement possible to a limited extent) Items for which a successor product is available Items available as substitute Availability horizon >5 years Items available as original component Surplus in stock Missing stock 18% 3% 15% 1% 6% 57% Unknown order nr. in warehouse, not required in plant Unknown order nr. in warehouse, required in plant Order nr. in warehouse, not required in plant Order nr. in warehouse required in the plant, but discontinued Order nr. in warehouse required in the plant, but discontinued within a year Order nr. in warehouse required in plant, can be used for fault rectification 35% 15% 34% 15% 1% Unknown order nr. installed in plant, not available in warehouse Order nr. installed in plant, not available in warehouse and repair or replacement is possible to a limited extent Order nr. installed in plant, not available in warehouse and discontinued within a year Order nr. installed in plant, not available in warehouse Order nr. installed in plant, available in warehouse Discussion at CS Booth

10 The high availability of your assets is our mission Preventive Maintenance Repair Services Onsite Support Service Spare Parts 24/7 customer support Keep assets reliably available; leverage OEM expertise time- and conditionbased maintenance, following OEM recommendations, by local qualified experts Fastest possible return to functional operation; leveraging OEM expertise on-site investigation; developed repair solutions; repairs include parts and materials by expert field service personnel Onsite support, available immediately on demand senior technical support, on-site investigation, utilize Siemens internal engineering department Fast delivery of high quality OEM spares provision of high-quality maintenance kits and spare parts; fast delivery of critical spare parts; spare part management 24/7 support for all questions and issues first-level call center support; second- and third-level technical expert support Page 10

11 High performing assets are the key success factor Modernization & Retrofit Refurbishment Upgrade Keep assets updated; extend useful asset life; avoid costly installation of new equipment modernization of hardware and software; retrofits of individual components Extend asset lifetime and reduce costs for new assets asset overhauls Adjust assets to changing demand; improve asset efficiency and performance software update services, system wide feature upgrades Page 11

12 Keep your assets up and running Operations Management Asset Management Training Programs Proactive Services Service Agreement Smooth transitions across asset generations and uninterrupted asset availability early, proactive information on asset obsolescence, asset optimization, Guaranteed Parts Availability programs, etc. Highly skilled personnel and latest technical expertise standardized and customized training programs that combine technology and business learning, presented by Siemens certified trainers Proactively well protected, stable systems hardening and security strategy; software patch management; Individually tailored Service Agreement Including variety of service options addressing customer needs including onsite support, parts agreement, training, etc. Page 12

13 Transforming your plant to a leading plant through PARTS PEOPLE PROCESS Guaranteed Parts Availability Training Services Technical Support Priority & Extended Warranty & Repair Program Block Of Hours (Onsite FSE) Software Update Services SERVICE PROGRAMS & AGREEMENTS Page 13 Discussion at CS Booth

14 Service Programs and Agreements Customized service packages Service Programs and Agreements Service Programs and Agreements A Technical Service Agreement bundles a wide range of services into a single annual or multi-year agreement. Ideally suited for meeting individual requirements and filling gaps in an organization s maintenance capability. Agreements can be customized at any time.

15 SIEPRO Service Agreement: Individually tailored service contracts at predictable costs Technical Support Extended Technical Support Priority Support Priority 24x7 Support Mature Product Support Siemens Remote Support Software Update Service Onsite Support Block of FSE Hours Embedded Engineers Technical Liaison Spare Parts Support Training Services Repair Services Guaranteed Parts Availability Extended Exchange Option Online courses Rapid Refresher courses Instructor led onsite or offsite Customized courses

16 Reduced risk, greater cost transparency! Extended Exchange Option Customer Goals Transparency and reliability regarding machine or plant operating costs Reduced economic risks Why it s worthwhile For up to 60 months after purchase of products and systems no additional costs Reliable operations Flexible contractual obligations Optimized maintenance procedures Siemens Offering Replacement of defective products* or systems; free of charge in case of failure, e.g. material fault** Contract terms of months after product delivery; selection in steps of 6 months Can be purchased up to 12 months after delivery * Exceptions: software and wear parts ** In accordance with their proper use only! Why Siemens? Original manufacturer parts only! Reliable delivery of selected replacement products and components Global service network

17 Reduced risk, greater cost transparency! Repair Service Contract for OEM Customer s drivers and goals Performance Objectives High availability of the machine Without RSC KPIs RSC Cover own risks Costs Asset, personnel Included Quick troubleshooting on-site Defined reaction times Available worldwide long travel $ 3,000 $ 12,000 Response time Troubleshooting Specialists worldwide Included Lower costs for service Own costs & risk Lump sum RSC: no additional costs Siemens offering Repair Service Contracts Troubleshooting on our products at the installation site Provide assets, know-how, personnel Fixed costs (central, local?) Costs Service Fixed costs Contract start with commissioning of the machine at customer Asset Know-how Personnel Years RSC covers risks for OEM / Dealer Greater planning security and higher availability Agreed contract duration Response times (on-site, travels) Material procurement Location Costs Fault recovery (duration and costs) Time $ Service costs Defined response times in different countries No. of service jobs Duration Costs Services can be retrieved by the contract owner Risk Service jobs

18 Serving you worldwide: About 11,000 Service employees at your disposal Europe, Africa, Middle East ,380 47% 44% 57% percent of total worldwide Americas ,806 25% 18% 25% percent of total worldwide Repair Centers, including factory, partners Training Centers Employees in Europe and 19 in Africa in Europe and 16 in Africa Source: Global Footprint Tool Asia, Australia ,038 28% 38% 18% percent of total worldwide

19 Service Requirements Maximize inventory needed to ensure: 98% online availability during normal conditions Challenges Immediate need for repairs on drives and motors Challenges Don t know what you have where you have it Problem Challenges Need to reduce inventory cost Challenges Large system critical operations and need onsite support Challenges Have critical systems and need guaranteed parts Challenges Need remote technical support Solution Repair / Refurbishment Solution External inventory assessment mapping part lifecycle Solution Turn data into solutions through assets management Solution Field Services / Block of Hours Embedded Engineers Solution Advanced Exchange / Partner Inventory management Solution Priority Support / Mature Support / Extended Support

20 Keeping your business running while shaping your digital future

21 Questions? Sajeeve Kalarickal Automation Services Portfolio Manager 100 Technology Drive, Alpharetta, GA Phone:

22 How did we do? Share your thoughts to win! Got 1 minute? Rate this seminar via MiA App for a chance to win Detroit Tigers tickets:

23 Seminar Slides After MiA, seminar slides will be available at: