Delivering measurable value. Dan Bradley Director, Reliability Systems

Transcription

1 Delivering measurable value Dan Bradley Director, Reliability Systems SKF Capital Markets Day 2009

2 Agenda 1. Introduction 2. SKF Documented value created for customers SKF Knowledge Engineering 4. Customer Value Examples

3 Introduction

4 Current Situation Customers are looking for immediate cost reduction SKF s service & solution offerings are proving more resilient during this downturn It is more important than ever to demonstrate added value Total Cost of Ownership is more important than price SKF Knowledge Engineering can help find value and can deliver it!

5 How we define measurable value By SKF Documented Solutions Program or contract key performance indicators (KPI) Presented in financial language Aligns with customer objectives Provides SKF (one or more of): Improved profit levels Superior pricing Increased volumes

6 SKF documented value created for customers 2008

7 SKF documented customer value added 2008 (SEKm) Asia Pacific, 660 Latin America, 400 North America, 415 Over 2.8 BSEK documented Europe, Middle East & Africa, 1,373 Over 18,000 cases of documented customer value These can be leveraged to show other customers proof of SKF s added value

8 Where was value created in 2008? Of the documented value created in 2008 alone, 58% was related to increased availability and capacity 15% was directly attributable to short term cost savings in the areas of productivity, reduced component usage, reduction of spare parts, reduction of scrap and HSE (Health, Safety & Environmental)

9 SKF Knowledge Engineering

10 SKF Knowledge Engineering SKF delivers & receives value through: Value added products Value added services Advanced solutions Knowledge Engineering

11 SKF Knowledge Engineering new market offers Dry lubrication system for conveyors E2 bearings & greases for electric motors and fans Machine condition advisor

12 Customer engagement Client Needs Analysis (CNA) Business Case (Documented Solutions Program) 3,800 cases SEK 2,840 m approved savings Implementation plan & quick scan / Maintenance strategy review Program Management Culture Process Technology

13 Replicate and improve Document value created (DSP) Value Added OLS $ 365,000 Lubrication System $ 240,000 PdM Inhouse* $ 17,500 PdM Outsourced* $ 90,000 Replication opportunities To other customer sites within same customer Within SKF share knowledge Increase our customer base and references Training* $ 15,000 Inspection/Reman* $ 20,000 MaPro* $ 60,000 Continuous improvement

14 Customer value examples

15 Paper company in USA Pulp and Paper - SKF Certified Rebuilder Customer need: Improve electric motor reliability Eliminate infant motor mortality Reduce total cost of motor ownership SKF solution: SKF Certified Rebuilder program Customer benefits: $620,000 in reliability incidents savings and growing 32-39% total electric motor repair cost reduction Stronger suppliers supporting each other, adding more value SKF benefits: SKF revenues, Value added, profit

16 Food & Beverage company in USA Food & Beverage Lubrication Systems Customer need: A method of lubricating palletizer chains safely, without removing guards, and stopping the production line. SKF solution: SKF Vogel Lubrication Systems drip chain lubrication system for palletizer chains was designed and supplied. System includes: pump unit, piston distributors, hardware, fittings, tubes & nozzles. Customer benefits: System eliminates safety hazard of manual lubrication and cover removal DSP has calculated an annual saving of $76,250 SKF benefits: Improved SKF perception as value added, solution provider in the lubrication systems area

17 Chemical company in Belgium Chemical Industry Total Productive Manufacturing Customer need: The management wanted to improve the productivity and efficiency of some of their production sites by implementing Total Productive Manufacturing (TPM) as a continuous improvement programme. SKF solution: SKF Asset Management Services has conducted 17 different TPM improvement projects, introduced Key Performance Indicators and extensive training programs for maintenance and production people. Customer benefits: Total sustainable cost savings: 670,000 annually Increase of the average availability of the production lines from 90% to 97% 220 trained employees in TPM methodology SKF benefits: Being the preferred business partner for TPM and maintenance improvements Creating new profitable consulting services such as ODR, KPI s Improvements driven by the SKF AEO model, with future opportunities

18 Nestlé Prepared Foods Company, USA Food Industry New Market Offer Customer need: Nestle Prepared Foods Solon, OH facility needed a tool that would enable their maintenance personnel to perform basic predictive maintenance tasks without extensive training or experience in typical predictive technologies. SKF solution: The new SKF Machine Condition Advisor provides the customer with a simple, portable tool that provides overall velocity, acceleration and temperature readings. Customer benefits: During beta testing the customer documented a gearbox with excessive vibration. The gearbox was removed from service during planned downtime, avoiding unplanned downtime cost of $4,200 and potential additional replacement cost of the gearbox is $2,700. Based on initial success the plant is increasing the assets being monitored. SKF benefits: The MCA is now documented within Nestle as a valuable tool to be used in developing basic predictive maintenance routes. Replication opportunities.

19 Energy company in Europe Customized seals keep contamination out Customer need: In order to extract material needed to generate energy, a lot of mining debris has to be removed. During this process abrasive material, like minerals, sand, dust etc have heavy effects on the technical equipment. SKF solution: SKF SensorMount Technology to adjust the required clearance during the mounting process. The new solution solving the customer need consists of: Two pieces of sealed spherical roller bearings A special designed seal Mounted with the help of the already existing SensorMount technology Customer benefits: Much longer service lifetime (+ 50%) having the result of no short-time bearing failures Reduced downtime and maintenance costs and reduced costs for re-lubrication. Total benefit of 146,000 EUR SKF benefits: Added value due to combination of bearings and seals into one solution.

20 Key business message

21 Key business message Industry is still buying if ROI is short term SKF delivered over 2.8 BSEK in value in 2008 SKF in return benefits from increased sales, margin improvements and customer retention SKF delivers this through unique products, services and solutions SKF Knowledge Engineering can help find value and can deliver it!

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