ARCADIS AUTOMOTIVE SECTOR OVERVIEW

Transcription

1 ARCADIS AUTOMOTIVE SECTOR OVERVIEW April 21, 2017 Optimising productivity & efficiency through facility design and operational readiness

2 Arcadis overview Leading global natural and built asset design & consultancy firm working in partnership with our clients to deliver exceptional and sustainable outcomes through the application of Design, Consultancy, Engineering, Project and Management solutions

3 Our global network enables us to bring our knowledge, best practice and experience of projects worldwide to specific local needs and situations 27,000 people 300+ offices 40+ countries 30,000+ projects Australia Abu Dhabi UAE Bahrain Belgium Brazil Brunei Canada Chile China North America 6,300 Czech Republic Dubai UAE France Germany Hong Kong India Indonesia Italy Jordan LatAm 2,500 Kazakhstan Korea Macau Malaysia Mexico Mozambique Netherlands Oman Peru United Kingdom 3,700 Philippines Poland Qatar Romania Saudi Arabia Singapore Slovakia Continental Europe 5,800 Spain Switzerland Taiwan Thailand United Kingdom United States Vietnam Middle East 2,000 GEC 1,350 Asia 4,600 Australia professionals in the Automotive Industry 25+ years Automotive Industry experience

4 We differentiate by addressing needs throughout the asset life cycle

5 We support our clients in Infrastructure Water Buildings Environment Rail & Urban Transport Solutions Water Supply & Treatment Business Advisory Environmental planning Highways & ITS Solutions Conveyance Commercially Led Program Management Site evaluation and restoration Airport Solutions Water Management Master Planning & Sustainable Urban Development Strategic environmental consulting Mining Solutions Water for Industry Performance Driven Design Environmental construction services Ports & Industrial Infrastructure Solutions Contract Solutions

6 Global Market Forces Impacting the Automotive Industry Internet connectivity in vehicles is resulting in a proliferation of data that is leading to new business models, enhanced customer experiences, and product improvement; and will be the backbone of enabling autonomous vehicles. The increase in urbanization over the coming decades, coupled with consumer demand is driving the growth of Mobility as a Service solutions With the advancement of smarter cities; vehicles will have a significant part to play as they interact with each other, people, infrastructure, and public transport services Urbanization Internet of Things / Industry 4.0 Smart factories are enabling more reliable and continuous vehicle production with visibility across end-to-end supply chains Electrification Electric Vehicles are forecast to be 35% of global new car sales by 2040 (Source: Bloomberg New Energy Finance, 2016) Majority of global Auto makers are including EVs in their product portfolio; however, there is not yet adequate charging infrastructure in place Rapid technological advancements and availability of data is resulting in more cross-industry collaboration and new business ventures. For example, between ridesharing organisations, Automakers, and municipalities The cost of investment in new facilities is resulting in more collaborative manufacturing business models Increased investment in product development, facilities, new ventures Automotive Industry Digitally sophisticated consumers Automotive Retail is undergoing a transformation due to changes in consumer expectations, enabled by digital technologies and social media Consumers are willing to purchase vehicles online directly from Automakers, and from non-traditional players such as Amazon Consumers are co-creating across the value chain through digital feedback channels Automakers need to develop, market, and distribute their products in a compliant and responsible manner that maximizes product value Tightening environmental regulations Consumers are increasingly vocal about corporate & social responsibility The Arcadis current 2017 talent shortage is forcing market players to think seriously about how to attract the best and the brightest

7 1. Creating a new facility 2. Optimising existing facilities 3. Operational readiness

8 Best-in-Class Automotive Facilities Delivering high quality, innovative solutions to support our clients in achieving Best in Class Automotive Facilities ranging from manufacturing plants and R&D centres, through to office space. This solution incorporates (but is not limited to) our expertise in areas such as Business Advisory, Master Planning, Program, Construction & Permitting Management, Environmental Consultancy, Design and Architecture. Client Needs An environment that reflects the client s brand, image, style, quality and aspirations Increased safety & wellbeing standards for employees Cost transformation on capital investment Flexible asset that can respond to changing business needs Integrated approach to the construction and industrialisation of a facility Benefits 35% increase in employee efficiency, and an increase in customer satisfaction 30-70% reduction in workplace incidents Access to market knowledge and benchmark data by region & territory Increased utilization of facilities 5-10% reduction in manufacturing costs, and shorter lead times through category management on large capital programs Selected Experience Lead Designer Services for a new production unit at Volvo cars Project, Cost, Commercial and Construction Mgt of a BMW Brilliance plant in China Project Mgt, Construction Monitoring, and Design & Permitting Mgt for a CKD plant in Brazil for Daimler Workplace Strategy, Lead Consultant on a new data center, Body in White production facility, and Project & Cost Mgt of new JLR production facility in Slovakia CONTACT: NILESH PARMAR nilesh.parmar@arcadis.com Mobile: +44 (0) creating the benchmark..

9 1. Creating a new facility 2. Optimising existing facilities 3. Operational readiness

10 Increasing productivity & efficiency in existing facilities Our goal is to help improve our clients margins and drive efficiency across their portfolio of investments throughout the asset life cycle optimizing value, performance, productivity and capacity. We typically achieve up to 20% reduction in costs through a programme of facility redesign and targeted cost efficiency improvement, covering all areas of commercial, technical and maintenance operations achieving business, process, facility and organisation alignment. Arcadis can help you to optimise the value from existing facilities, tailoring the space to meet your specific business needs

11 Factors that influence costs Cost variables = x x Cost Quantum Efficiency Rate Up to 20% Reduction Reduced quantum decreases the number of jobs, labour hours and inventory consumption Increased efficiency reduces the labour hours and rework required to complete the quantum of work Reduced rate through better commercial management reduces the overall cost of work delivery Quantum Reduction Cost Reduction Opportunity 6-8% Efficiency Increase 5-7% Rate Reduction 8-10% Examples of areas of focus Maintenance Strategy Work Selection Inventory Management Technology Application Right first time Productivity Work Planning & Scheduling Work Execution Logistics Lean Cost Management Contracting Strategy Supply Chain Management We typically achieve up to 20% reduction in spend through increased cost-effectiveness in all areas of commercial & technical operations & maintenance

12 We apply a suite of industry-tested integrated solutions to deliver client value As Is To Be Review Can be a Site or Desktop study of the current position Report indicates areas for cost saving and improvements, and delivers an estimated saving / benefits case Productivity Improvement Process (PiP) Wrench time provides a detailed measure of the sites productivity levels getting the crew to the activity Report indicates potential improvement initiatives Efficiency Improvement (WAN s) Work Activity Norms (WAN s) measure the efficiency of the crew at the work face Embedded Contract Factor (CF) provides a Continuous Improvement Plan (CiP) Contracting Solutions Various contracting solutions tailored to work with the various tools that provide incentivised solutions to meet Client and Project needs Transactional IT Platform (CCES) The Contract Cost Estimating System (CCES) is a web based platform for producing and managing estimates and transactions CCES is a multi lingual, multi currency tool accessible from any location with internet access Lean Management Design, develop and deploy an integrated lean management system Delivers improved performance, consistent and reliable execution of work

13 1. Creating a new facility 2. Optimising existing facilities 3. Operational readiness

14 Setting Up New Ventures: Exploiting New Market Opportunities Supporting Automotive OEMs in the design and set up of New Ventures to exploit unique business opportunities, in partnership with other organisations, including Contract Manufacturing Partnerships to increase production capacity via specialist third party vehicle manufacturers. Our value proposition is founded on a collaboratively designed, efficient and integrated operating model, implemented with control and agility, to provide certainty of outcomes Maximise the Opportunity, Minimise the Risk and consists of three connected core elements: 1. Accelerated Start Up Mobilising the joint team (e.g. partnership, JV) around a common vision, benefits case and delivery approach 2. Maximising Value By Design Bringing the New Venture to life through an optimised, fully integrated and sustainable business operating model 3. Delivering a Sustainable New Venture Creating certainty of delivery outcomes through fully integrated and controlled programme delivery Client Needs Exploiting new business opportunities in response to strategic drivers, e.g: Growth addressing Capacity or Capability gaps in current operations Product Development accelerating time to market Innovation accessing new technologies Diversification exploiting new market opportunities Performance Improvement implementing new operational techniques Benefits Greater certainty of optimised and sustainable outcomes delivery through: Additional business focus, capacity and capability via collaboration / partnership Quick transition from concept to action Integrated Operating Model, connecting Organisation, Process, Technology and Information design across different organisations and complex operations Strength of partnership via clarity of operations & fully integrated joint team New venture established & delivering anticipated benefits, to time, cost & quality constraints Selected Experience Contract Manufacturing - OEM designed vehicle production: Sponsorship alignment; Programme & joint team definition Target Operating Model, Organisation & Business Process Design Operational readiness assessment, planning & delivery Stakeholder management Programme management / governance Programme control and management information, e.g. Risk, Issue, Change, Schedule, Contract management CONTACT: JUSTIN MALONEY Justin.maloney@arcadis.com Mobile: +44 (0) deliver a sustainable new business model..

15 Our operational readiness approach seeks to maximise the opportunity whilst minimising the operational risks a new facility brings Outcomes Maximise the Opportunity Operational Readiness Minimise the Risk Clear & aligned definition of the future operations An aligned Facility Vision and Strategy Clear Operating Model and Operating Principles Robust case for change target benefits / improvements the future facility and its operations will deliver Integrated planning, design and implementation Integrated plan / road map with key gateways / check points to assess are we ready? Cross Functional Operational Readiness workstream coordinating all operational design and implementation across people, process, systems and infrastructure Centrally co-ordinated focus on stakeholder engagement & communication - one voice for the project Operations aligned to deliver the Facility strategy and targeted benefits People in place with the right capability to operate the facility Systems / equipment aligned to user requirements, ready, fully tested, users trained Fully documented, tested and embedded processes, operating procedures / ways of working to meet performance, regulatory, quality and safety standards Aligned and supportive stakeholders sponsoring the new operations Transformed asset and operations delivering better quality outcomes The starting point is a clear and aligned operating vision for the future facilities

16 Outputs We have a tried and tested approach ASSESS DEFINE DESIGN EMBED BAU Initial Assessment & Operational Vision Target Operating Model Definition Detailed Design & Implementation Planning Implementation Operational Asset Operational Readiness Workstream Set Up An understanding of the current service model, existing best practice and design work done to date Key stakeholders / customers aligned on the future operating model Vision for the facility operations at day 1 and into BAU Operational Readiness resource requirements defined Target operating model that defines the key components of the business Operational Readiness programme, resource and governance setup Operational Readiness Workstream Management Detailed definition of Business operations including:- People, Process, Systems, Assets and Infrastructure Clear and agreed implementation plan Benefits defined Operational readiness work packages tested, deployed and ready to operate Benefits realisation Management Transformed asset delivering better quality outcomes The approach is flexible, scalable and tailored to specific client needs