Finbarr Dowling MAS2011 Presentation

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Finbarr Dowling Managing Director, Siemens Inverters

MAS Conference June 16th 2011 Old Trafford Innovate or Die

Finbarr Dowling Managing Director Siemens I DT MC I Congleton

Te d H o ff

A long history of innovation

Who we are

1971 1991 1996 1999

Siemens established at Congleton Designated electronics manufacturing factory GZ ASI 1S HQ A&D SD D Design, Manufacture & Technical CS

Total land area:21,000 m2 Building area (office + production ):12,000 m2 Employees: (510)

Congletons manufacturing technologies and products

Sinamics G120 Modular

Sinamics G120D

Sinamics G110

Micro Master Integrated

Surface Mount Technology

Through hole Technology

PCB Test Technology

Coating Technology

Mechanical Technology

Our CompetenciesElectronic production of Industrial products in the area of low complexity, high volume Variable Speed Drives & Ancillary equipment on a world class level in regards of excellent product quality, high productivity and highest logistic performance.

Develop robust, competitive product families for the global market with core competence for high IP rated products. Highly qualified engineering and qualification services for material, processes (incl. Design for Manufacture & Design for Test) and equipment. Design, programming, manufacturing and documentation of function test equipment for Inverters, Options and HMI. Professional project management supported by excellent PLM and NPI processes

Third tier Customer Support using the advantage of local production and R&D facilities.

Repair Centre offering NPI dynamic feedback and customer special investigations.

1971-2011 Manufacturing as a % of GDP - UK

Congleton sales 2002-11

Our Vision

Our Strategic Themes

The key is constant productivity through innovationIncreasing Effort / Complexity for Implementation

DTC

Six Sigma

Business Improvement Projects

LEAN Cell Design

LEAN In the Office

Continuous Improvement Process

Suggestions

Outputs from the Productivity FunnelBusiness Improvement ProjectsLEAN In the Office Continuous Improvement Process

D TC

Six Sigma

LEAN Cell Design

Suggestions

Good Example. Designed new improved cover with less labelling and improved PCB together with new software and keypad with significant quality improvements Savings 42000/Yr

Good Example. Skiipsare damaged upon power up if excess paste is applied during printing. 6 Sigma methods used to identify and reduce scrap.

Saving 11,335/Yr

Good Example. A third party supplier was used to customise our G110 drives for UK customer. By setting parameters inline we have eliminated the need for the third party. Saving 9,693/Yr

Good Example. VS2 LCD team on G110D production line have achieved reduction in floor space by 50% together with process improvements and WIP reduction Saving 81,944/Yr

Good Example. A Material Handling LIO team identified that a saving could be achieved when ordering batches of 10,000 pieces instead of 1000 piece.

Good Example. A CIP team identified that one operator can now operates two PCB test systems at the same time instead of one system each.

Saving 29,412/Yr

Saving 183,243/Yr

Good Example. An alarm to alert operators when pallet gets stuck at oven entrance, so that they can solve the problem rather than letting the pallets build up to a backlog situation.

Saving 12,107/Yr

YTD 161K Target 406K

YTD 8K Target 100K

YTD 0 Target

350K

YTD 116K Target 170K

YTD 195K Target 150K

YTD 617K Target 475K

YTD 312K Target 400K

* (YTD = End April 2011 ), including all productivity measures VAM , CRI & Cost avoidance .

Excludes 430K roll over

The UK Skills squeeze and challenge H i her g E d u ca ti n o3 0 0 , 0 0 0 U K G ra d u a te s / ye a r o n l 1 0 , 0 0 0 y e n g i e e ri g ( C h i a p ro d u ce s 6 0 0 , 0 0 0 e n g i e e ri g n n n n n g ra d u a te s) 3 0 % E n g i e e ri g G ra d u a te s ta ke ca re e rs o u tsi e o f n n d e n g i e e ri g n n G ra d u a te s o fte n d o n t h a ve th e ri h t ski l g ls

I te rm e d i te n a

R e a lski l sh o rta g e a t te ch n i a n l ve l M a n u fa ctu ri g ls ci e . n w i ln e e d a t l a st a d d i o n a l5 8 7 , 0 0 0 n e w w o rke rs o ve r l e ti n e xt 1 0 ye a rs m a i l te ch n i a n s n y ci A p p re n ti a n d te ch n i a n ro u te se e n a s se co n d ce ci cl ss a l rn a ti to U n i rsi a te ve ve ty 4 0 % o f E n g i e e ri g w o rkfo rce a g e d > 4 5 n n Po o r p e rce p ti n o f e n g i e e ri g a n d m a n u fa ctu ri g o n n n To o fe w stu d e n t ta ki g S T E M su b j cts n e Lo w ski l a n d a sp i ti n s ls ra o N u m b e r o f 1 6 - 2 4 ye a r o l s w i ld ro p b y 8 % i n e xt d l n 1 0 ye a rs

S ch o o l E d u ca ti n o

Associations CBI / EEF/Royal academy of Eng.

Government & Ministerial Advisory Groups

N a ti n a l o engagem ent

Siemens approach to address the squeezeH i her g E d u ca ti n oEducational STEMNET / Engineering UKE3 & Power Academy

Key Pro g ra m m e s

Lincoln UniversityIndividual Universities Diplomas/Apprenticeships

Professional bodies IET/IMechE

Sector Skills Councils - Semta

Manufacturing Insight/Futures

I te rm e d i t n a e

PM@Siemens Academy Commercial Academy Wind Power Maintenance Diversity eg WISE Programmes; Big Bang etc.

S ch o o l E d u ca ti n o

Schools & Ambassador pr. LEAs and local agencies

Work placements

Key ProgrammesAttraction and Recruitment

2Availability

1 Workstream 1 Education / SchoolsPrimary Secondary & 6th Form Secondary & 6th Form (Colleges)

Workstream 2 GraduatesUndergraduate sponsorship Graduate Recruitment

Engage

Engage

Enthuse

Enlighten

Encourage & Engage

Workstream 3 ApprenticesApprenticeship

Engage

Make ItWhat Who How ResultMake It helps young people discover what manufacturing means and how it could lead to a rewarding and exciting career in the future Partnership with The Manufacturing Institute 6 Siemens managers acting as Dragons Apprentices and graduates help the children on the day as consultants In our first Make It day 120 children from 10 local schools took part They are set challenges to 3 different problems and choose 1 to work on We provide the facilities and hospitability 98% of children felt it gave them a better understanding of the careers available in Manufacturing. In addition at the outset 52% said they would consider a career in Manufacturing at the end 82% said they would.

City

Sustainable Employee Engagement

NGO Customer Others

With Partner Integrated in local business strategy

Uses Siemens technology Qualitative KPIs Quantitative KPIs

Girls can do it too!WhatSiemens Motion Control in Congleton are encouraging girls and young women into engineering careers. Primary and secondary schools with Siemens (plus other businesses) are working together in establishing a long term transferable model for the learning and skills sector.

Where

How

Events aim to increase the number of girls taking up engineering diplomas, apprenticeships and careers. Siemens has developed a program of factory tours, talks, events and competitions.

City

Sustainable Employee Engagement

NGO Customer Others

With Partner Integrated in local business strategy

Uses Siemens technology Qualitative KPIs Quantitative KPIs

GreenpowerWhat Who How ResultGreenpower is working with schools across theUK to encourage students to build andrace their cars at motor racing circuits. Each race lasts for 4 hours so reliability, energy efficiency and innovation are key. 50 Siemens volunteers support the Greenpower events acting as stewards and marshals Apprentices and graduates help schools with the building of cars Around 600 schools and10,000 students across theUK are taking part Targeting schools close to Siemens sites to increase participation Provide PLM software to all the schools participating Greenpower is monitoring the take up and success of students taking physics, maths and sciences to judge how effective the programme is improving student performance

City

Sustainable Employee Engagement

NGO Customer Others

With Partner Integrated in local business strategy

Uses Siemens technology Qualitative KPIs Quantitative KPIs

Big BangWhat Who HowThe Big Bang is the UKs biggest single celebration of science and engineering for young people. Attracting over 23,000 students over three days from schools around the UK. 20 Siemens graduates, apprentices and other employees volunteered to man the event for three days Siemens 4d ultrasound scanner on a phantom baby. Build a wind turbine model in action Practical e-car building with Greenpower Over 58% of secondary pupils indicated that they were more likely to choose a STEM qualification. Siemens booth was voted in the top 10 attractions

Result

City

Sustainable Employee Engagement

NGO Customer Others

With Partner Integrated in local business strategy

Uses Siemens technology Qualitative KPIs Quantitative KPIs

The Urban Sustainablility Centre - London

Apprentices - Siemens plc works with national partners

Siemens Energy example Siemens took apprenticeship training in-house in 2008 To guarantee the quality of training provision to meet Siemens plc requirements

Developed new Apprenticeship Framework for Wind Power Service Technicians

The E3 Academy Formed in March 2008 the E3 Academy offers three or four year sponsorship to undergraduate students studying Electrical (Energy) Engineering at the Universities of Nottingham, Bristol or Newcastle. This wide and exciting area covers Energy Conversion, Power Electronics, Machines and Generators, Electrical Drives and Control Engineering. This is a huge growth area with applications covering Aerospace, Automotive, Marine, Industrial Manufacturing, Renewable Energies, and Process and Utility Industries. Sponsorship is provided by UK-based international companies and the Academy is endorsed by the Institution of Engineering and Technology Academy Scholars will benefit from: a bursary of 2,500 for each year of study. 8 weeks summer vacation training paid at a rate of 1250 per month. Academy events, such as the Summer School, where they will meet become acquainted with the Electrical Energy Engineering community. If subsequently they are recruited by Siemens we pay them 6,000 back for tuition fees

Siemens Commercial Academy Alternative career to going to University 3 Year programme with University day release (BA programme) Entry requirements: B Grades (or above) in GCSE Maths & English At least 240 UCAS points at A-Level (or equivalent) ideally in Maths, Business Studies or Economics

Placements in different Siemens operating businesses Accounting & Controlling Supply Chain Management Human Resources Corporate HQ Shared Services

Graduate Activities Key Focus areas Move from reactive recruitment to proactive Increased use of academies, internships & sponsorship schemes (e.g. Power & E3 Academy). Recruit increasing of proportionyearsour graduates through this approach target 70% in 3

Use local deliver centres/agencies to multiply our engagement e.g. Science Museums Develop better accreditation & development schemes (IET etc) Central pools of mobile Graduates Improved & targeted Branding & communications to Generation Y Fewer but closer Strategic University relationships and engagement 1

1 Generation Y target group born in the 1980s & 1990s, see appendix for summary

Future Provision of Product & Graduate Training

Commercial contracts and lease agreements signed Steering groups formed Key staff appointments made Loughborough University Mentoring

Planning application submitted April 2010 Links to Siemens Asia and NW Europe made Awarded most Responsible project within Siemens UK

World Class Facility - Lincoln

Over 7M of funding has been allocated to the construction of the new School of Engineering building. The Hub will combine state of the art R&D ,teaching and training facilities , the building will make an iconic statement about the status and intent of Engineering at the University of Lincoln. Forming part of the greater campus development, Engineering will take its place in a truly 21st Century University environment.

Product Training at Lincoln University Siemens will locate its customer and staff training school at the University campus in a brand new Engineering faculty to be built and operational by August 2011.

Pro d u ct Tra i i g w i lre m a i a S i m e n s n n l n e fu n cti n b u t w i lb e n e fi fro m o p e ra ti g i a o l t n n h i h e r e d u ca ti n e n vi n m e n t i p u rp o se g o ro n b u i t p re m i s l se Fu tu re Pl n i fo r Pro d u ct Tra i i g co u rse s to a s n n b e a ccre d i d b y th e U n i rsi a n d te ve ty E n g i e e ri g I sti ti n s w i a vi w to n n n tu o th e a w a rd i g o f C PD p o i ts fo r sh o rt co u rse n n co m p l ti n . e o

Key BenefitsProduct Training Facility

Research & Development

Industry Ready Students

The demand is real!

*And finallyMaking things creates a need for design, infrastructure, production engineering and technological innovation that increases the technical skills base of the nation and creates employment and training opportunities of worth

A country of millions of helpdesk operators is not going to set the world alight. Value added to raw materials is more tangible that the parasitical commissions merry go round

Arthur Koestler drew an alarming parallel between the Roman Empire, with all the manufacturing processes sub-contracted to the provinces, and the idle, jaded citizens of Rome entertained by vile public spectacles, and the modern world.and he had not even seen Big Brother or the Jeremy Kyle Show!* Taken from a letter to The Times 04/05/2011 Mr Stephen Hart in response to an Opinion piece by David Wighton

And finally

Pro u d to b e S i m e n s! e Pro u d to b e a U K M a n u fa ctu re r! !