issue 3 / 2008 an abb group publication intouchfile/abb+intouch+3-2008.pdf · 2017-09-15 · abb...
TRANSCRIPT
Issue 3 / 2008An ABB Group publication
Powering up stadiums for the soccer World Cup
Switching on to switching offEnhancing lifestyle and increasing energy efficiency through ultra-modern commercial and residential automation products
Getting the job doneCompleting projects that are incident-free, on time, to specification and within budget
inTouch
�ABB InTouch �/2008
4 Editorial
6 Powering up stadiums for the soccer World Cup
ABB is now working on orders for venues
of the next major global sporting event: the
2010 soccer World Cup.
7 Leadership role at automation conference
ABB played a prominent role at the
bi-annual PROFIBUS Conference.
8 Meeting the channel partners
Channel partners have a new
understanding of ABB.
9 Strong execution lifts Q3 net income 26%
Double-digit growth in revenues with EBIT
up 25% despite $100-million impact from
hedging valuation.
10 When a plan comes together
Phindokuhle Mohlala outlines the
challenges of managing a large power and
automation company’s human resources.
12 Getting the job done � Pieter Bresler, Operations Manager, Power
Systems Division, ABB South Africa,
provides some insights into completing
projects – incident-free, on time, to
specification and within budget.
14 ABB gets thumbs up on sustainability progress
� ABB South Africa recently held a
stakeholders’ dialogue meeting to
obtain feedback on its sustainability
programme.
15 Doing it right first time ABB South Africa’s group quality
assurance manager Motimedi Ndala’s
quest for quality.
16 Switching on to switching off
Delivering ultra-modern commercial
and residential automation products
which enhance lifestyle and increase
energy efficiency.
In this issue � / 2008
Managing Editor:Chesney�[email protected]
Assistant Editor:Tsile�[email protected]
Editor – Power Technologies:Shivani�[email protected]
Editor – Automation Technologies:Nicoline�[email protected]
inTouch
Technology Solutions is published on behalf of ABB South Africa by:
Syzygy�MediaTelephone: +27 82 552 [email protected]
This publication was designed, compiled and produced on behalf of ABB South Africa by Syzygy Media. Whilst the compilation and production of ABB inTouch is done with great care and attention and every effort is made to prevent mistakes, neither ABB in Southern Africa nor its principals or subsidiaries, nor Syzygy Media, accept any responsibility for any errors or the consequences thereof.
ABB South Africawww.abb.com/[email protected]
Telephone: +27 11 236 7000Facsimile: +27 11 236 7001
Address: ABB Park, 3 Eglin Road, SunninghillPostal: Pvt Bag X37, Sunninghill, 2157
In this issue
Contents
16
12
� ABB InTouch �/2008
For ABB in South Africa sustainability is
about balancing economic success,
environmental stewardship and social progress
to benefit all our stakeholders.
It is important for us to engage with our
stakeholders, to listen to and take advice from
their experts, and to ensure that they are
informed about our policies and practices.
Stakeholder engagement takes many forms at
ABB, from listening to and taking advice from
experts in formal meetings to everyday
discussions and evaluation of business
operations and impacts.
In the third quarter of 2008 we held our annual
Stakeholder Dialogue, to which we invited a
range of stakeholders, including representatives
of government, our customers, suppliers,
employees and non-governmental organisations.
We believe it is important to incorporate the
views of our stakeholders into our planning for
2009 and beyond. We will follow up with
smaller workshops on defined issues raised in
the Stakeholder Dialogue workshops.
At the Dialogue we facilitated a discussion
on what stakeholders consider key issues
and focused in workshops on three issues:
enterprise development in the supply chain,
climate change and carbon neutrality, and
HIV/AIDS and business continuity.
Investing to develop skills is important for ABB.
We need to ensure that our company and the
industries we serve have the skills and
leadership to grow in the future. We are
contributing to a better society by supporting
programmes to care for orphans of HIV/AIDS,
and fund “youth-in-energy” programmes at
primary schools to promote environmental
awareness and energy efficiency.
Inside ABB we have worked hard to ensure a
greater gender balance, focused on attracting
and retaining talent – given the war of
engineering skills, increasing preferential
procurement and the need to ensure that our
operations are environmentally friendly. To this
end, the new home for ABB in South Africa at
Longmeadow, Johannesburg, will be a green
building, which will incorporate the latest
technologies and philosophies in environ-
mentally friendly construction such as energy
efficiency, photosensitive lighting and the
recycling of water.
Obtaining feedback and incorporating views
into our stakeholder sustainability programme
occurs throughout the year as we meet
representatives of various stakeholder groups in
various parts of the country, and engage with
employees, community-based organisations,
educationists and environmental and energy
efficiency experts.
We are continuously adapting, changing and
refocusing our sustainability programme to
ensure that it meets the needs of our company,
employees and stakeholders. It is important that
we respond to the priorities in society in the
most practical and purposeful way to ensure
that we are investing in a sustainable future
today for tomorrow.
Carlos Poñe
CEO and Country Manager
for ABB South Africa
Carlos Poñe.
Editorial
Engaging with stakeholders
ABB InTouch �/2008
The ABB Group Annual Report 2007 stated
that the strategy for the future is to focus on
energy efficiency. To this end, it is developing
products and services that use energy more effec-
tively and maximise return on capital investments.
ABB will continue to invest in existing technol-
ogies to ensure their reliability for years to come,
while developing new technologies to meet
future needs for power and automation systems.
ABB in South Africa has been partnering with
customers – including Eskom and municipalities
– to increase their electricity power capacity,
improve grid reliability and reduce technical
losses. In industry, many of our customers – such
as in mining, petrochemicals and pulp and paper
– are implementing our energy-efficient motors,
drives, instrumentation and capacitors to make
more effective use of the electricity they consume.
Climate change is a worrying reality that
challenges us to change our consumption habits
and lifestyle.
I recently attended the AMEU conference in East
London where Erika Johnson, Chief Officer,
Networks and Customer Services, Eskom,
highlighted the importance of energy security in
a resource-constrained world. What stood out
for me was her statement that energy is often
wasted not because the technology is inefficient
but because consumers are not sufficiently
aware of the wasteful impact of their behaviour.
Technology at ABB can make a difference to
energy efficiency and climate change. As a
result, we have a role to play in helping our
customers to change their behaviour; and we
need to support them.
There are fast and effective ways of reducing
carbon dioxide emissions that can be applied
right now: energy-efficient technologies that are
commercially available and proven.
For example, about 40% of electricity is
consumed by industry, and two-thirds of that
is used by electric motors. Devices to regulate
the speed of a motor can reduce its energy
consumption by 50% in many applications. Yet
less than 10% of motors are equipped with such
a device. This is an opportunity for our mining
industry, which is under pressure to reduce
operational costs.
These are just some of the many technology
solutions that our customers are enjoying in using
electricity energy more productively in their
businesses. The ABB website has a special portal
where you can view case studies from around the
world on how customers – from utilities and
industries to commercial buildings – are using
less electricity, yet increasing production.
Lowering energy costs has become critical due
to electricity power shortages in South Africa,
but many companies are now realising that
energy efficiency can be part of their strategy
for higher productivity.
Although electricity savings may no longer be
voluntary, but mandatory, there is still a lot
more that we can do to contribute to increased
energy efficiency.
Given the challenge of financial market turmoil,
credit resources have become scarce and each
one of us has a role to play in using less
electricity so we do not unnecessarily increase
our national financial indebtedness. Important
projects are competing for fewer available
financial resources in the country.
However, energy consumption is an area in
which each of us can make a meaningful
contribution by changing consumption
behaviour. In this way we can contribute
towards making our country more competitive
and better equipped to grow its economy.
Nthabiseng Dube
Group Marketing & Communications
Vice President for ABB South Africa
Special message
�
Energy efficiency solutions
Nthabiseng Dube.
With the pressing need to increase electricity power capacity in South Africa, and to reduce energy consumption in homes, offices and factories, ABB South Africa – as a leading global power and automation technologies company – has an important role to play in the local market.
6 ABB InTouch �/2008
South Africa is building or renovating 10
venues for the 2010 soccer World Cup
tournament, and ABB has secured orders to
supply distribution transformers for stadiums
in the country’s two main cities, Johannesburg
and Cape Town.
ABB will supply dry-type transformers, so called
because they use a hard resin as insulation
instead of oil, minimising environmental and fire
hazards. The equipment, to be supplied by
ABB’s Spanish factory in Saragossa, is virtually
maintenance-free and is particularly well-suited
to extreme climatic conditions.
Reliable�power�supply“South Africa has suffered from severe power
shortages in recent months, so the reliability of
the power supply is one of the organisers’
main concerns. We are confident these will be
addressed on time,” said Carlos Poñe, head of
ABB in South Africa.
Fourteen transformers with power ratings from
500 to 1 000 kilovolt-amperes will be supplied
to Soccer City stadium, located in Soweto near
Johannesburg. Built in 1987, South Africa’s
largest stadium is being renovated to increase
the seating capacity to 104 000 from 94 700,
and to install a roof and new floodlights.
With its new design inspired by traditional
African pottery, Soccer City will host the
opening ceremony and the final, as well as
eight other games.
ABB also won an order to supply 12 trans-
formers, each rated 1 200 kVa, for Green
Point Stadium in Cape Town. An older stadium
with a capacity of 18 000 has been demolished
to make way for the new 68 000-seat World
Cup venue.
Excellent team co-operation between South
Africa and Spain is making possible successful
execution of this project. António de Sá and
Ross Botha are involved in the ABB South
Africa organisation, and Juan Pedro Gracia is
the lead engineer from ABB Spain’s Saragossa
manufacturing operation.
An artist’s impression of what South Africa’s largest stadium, Soccer City in Soweto, will look like after renovations.
Local news
ABB South Africa
Powering up stadiums for the soccer World Cup
After successfully delivering a range of power and automation projects for the Olympic Games in Beijing, ABB is now working on orders for venues of the next major global sporting event: the 2010 soccer World Cup. By Shivani Chetram.
7ABB InTouch �/2008
ABB South Africa
Local news
Bernhard Jucker, head of ABB’s Power Products Division.
ABB won a $75-million (R600-million) contract
from Eskom, South Africa’s national electricity
provider, in September to supply and install
circuit breakers to strengthen the country’s
electricity network.
ABB will deliver about 2 000 circuit breakers
with operating voltages of 66 kV and 132 kV
over a five-year period, and will be responsible
for installation and commissioning.
The circuit breakers help protect electrical
equipment from damage caused by current
surges. They will assist in enhancing the safety
and reliability of the electricity network.
“We are proud to support Eskom in this
critical period of strengthening the power
grid,” said Bernhard Jucker, head of ABB’s
Power Products Division. “Our production
capabilities, together with the expertise
of the local teams that will install and
commission the equipment, helped us
secure what is one of ABB’s largest-ever
orders for circuit breakers.”
“We are seeing Eskom speeding up their
projects to upgrade the infrastructure in South
Africa and will continue to support them on
the supply and technical aspects,” said Carlos
Poñe, CEO, ABB in South Africa.
Circuit breakers to strengthen power network ABB’s production capabilities, together with the expertise of the local teams that install and commission equipment, helped secure one of the group’s largest-ever orders for circuit breakers. By Shivani Chetram.
ABB South Africa played a leading role in
the bi-annual PROFIBUS Conference in
August 2008 at the Eskom Conference
Centre, Midrand, which focused on asset
management and diagnostics.
The conference, attended by about 140
delegates, was opened by Edwin Bauer,
head of ABB South Africa’s Business Unit
for Instrumentation, Automation Division.
Bauer is also the current chairman of
PROFIBUS South Africa.
Presenting ABB’s approach to complete
asset management was John McIntosh,
Product Manager for Process Automation.
ABB South Africa presented LV Products,
electrical motors, drives and control, and
instrumentation at the exhibition that
formed part of the conference.
The Regional PROFIBUS Association (RPA)
of Southern African was created in 1989 by
a consortium of companies and institutions
and has more than 24 members.
PROFIBUS provides services to companies,
whether as ultimate end-users, system
providers or equipment vendors. The
organisation offers technical support,
technical and promotional literature,
certified training and related services.
Delegates at the conference view ABB’s latest automation technology solutions.
Leadership role at automation conferenceThe Regional PROFIBUS Association of Southern African recently held its bi-annual PROFIBUS Conference. By Nicoline Venter.
8 ABB InTouch �/2008
ABB South Africa
Local news
ABB presented its latest technology
and demonstrated the benefits of using
KNX-approved ABB products at the Green
Building Expo in August.
The event took place at Vodaworld in Midrand
and was attended by about 700 delegates
interested to see the latest developments in
energy optimisation and smarter living.
Closely connected with KNX building system
engineering is the comfort of controlling
shutters, blinds, lighting systems, audio
systems, heating systems, air-conditioning and
other devices. These features can contribute to
energy saving.
ABB KNX-approved products are used for
installations in residential, commercial,
administrative, public and service industry
buildings. Products on display included the
ABB Busch-Jaeger touch screen, the Triton
multi-functional switch, the Busch Watchdog
sensor, and dimming functions.
The KNX Association is a group based in
Brussels and consisting of leading
manufacturers of installation equipment. The
association advances the KNX standard, which
is a completely open platform.
KNX was launched in South Africa about two
years ago.
Vladimir Skakic, ABB systems integrator (centre), talks to a delegate at the Green Buildings Expo. Technical support was provided by Liezl Nel (right) from ABB South Africa.
Green building blocksABB showcased its latest technology for green buildings in August. By Nicoline Venter.
ABB held a seminar in Johannesburg from
September 30 to October 2 to help channel
partners understand the group and its
business strategies and to strengthen their
distribution offering.
The event, attended by 140 delegates, included
presentations by ABB’s top managers and
short product updates were run throughout the
first day.
The keynote address was by Carlos Poñe,
CEO ABB South Africa.
The second day included “kiosk meetings”, in
which channel partners had the opportunity to
meet global product specialists. ABB personnel
also discussed individual business requirements
and challenges with the channel partners.
Finally, a hands-on product exhibition during
the conference enabled delegates to experience
ABB’s latest offerings first-hand.
Carlos Poñe, CEO ABB South Africa, and Per Wanland, Divisional Manager, Automation Products.
Meeting the channel partnersChannel partners have a new understanding of ABB. By Nicoline Venter.
�ABB InTouch �/2008
Strong execution lifts Q3 net income 26%• Double-digit growth in revenues, EBIT, net income and cash flow • EBIT up 25% despite $100-million impact from hedging valuation • Orders stronger in product businesses; lower large systems orders • On target to deliver in line with 2008 growth guidance
ABB reported double-digit increases in revenues,
earnings before interest and taxes (EBIT), net
income and cash flow in the third quarter of
2008 as the company continued to improve its
operational performance.
EBIT grew 25% to $1.3-billion, including a net
expense of approximately $100-million,
equivalent to roughly one percentage point of
EBIT margin, resulting from the mark-to-market
treatment of hedging transactions.
Net income rose 26% to $927-million and cash
from operations increased to $1.1-billion.
Revenues grew 22% (local currencies: 16%)
on the successful execution of the strong
order backlog.
Orders received increased 7% (local currencies:
1%) to $8.9-billion. Orders for power equipment
showed continued robust growth in all regions
and orders for industrial automation products also
increased at a double-digit pace in most markets.
“Our solid revenue, earnings and cash flow
growth in the third quarter demonstrate our
ability to successfully execute across all of our
businesses,” said Joe Hogan, ABB’s Chief
Executive Officer.
“We continue to benefit from long-term trends
to expand and upgrade power infrastructure,
improve industrial productivity and lower
environmental impact.
“It’s too early to say how the recent financial
market turmoil will affect our markets in the
short term, but our operational strength and
flexibility, leading technology, competitive cost
base and solid balance sheet put us in a good
position to meet a tougher market. We are on
target to deliver on our 2008 growth guidance.”
Joe Hogan, ABB’s Chief Executive Officer.
Global news
ABB International
First students win scholarships from ABB engineering foundationThe first scholarships under the ABB Jürgen Dormann Foundation for Engineering Education have been won by engineering students in Poland.
Three Polish students at different faculties of
the AGH University of Science and Technol-
ogy in Krakow won scholarships in 2008, and
have had them renewed for another year. The
scholarships are given to talented students who
need financial support to enable them to study.
They are the first of dozens of scholarships
due to be granted in different countries in
the coming months. The foundation is close
to finalising agreements with universities in
China and India, and they will be followed by
Brazil and other countries to be selected at a
later stage.
“It is very good to see these talented and hard-
working young people having the opportunity to
study and develop their potential,” Gary Steel,
chairman of the foundation’s board, told senior
university officials at a meeting in Krakow.
“The success we are seeing in establishing this
programme in Poland is a blueprint for the
foundation in other countries.”
The three successful students are joined on the steps of AGH University by Gary Steel, chairman of the foundation’s board, and (left to right behind) Peter Bedford, head of ABB Group Global Resourcing, and Poland country manager Miroslaw Gyszka.
10 ABB InTouch �/2008
Phindokuhle Mohlala, ABB South Africa’s
Group Human Resources Director, looks
back on the past five months with a sense of
satisfaction and fulfillment.
The reason she is upbeat is not hard to find:
when she joined the company little more than a
year ago, a key deliverable was a new human
resources strategy –– and recently all its pieces
have been falling into place.
Human resources departments around the
world are generally viewed as pen-pushing
administrative offices, often oblivious of their
organisations’ core businesses. At ABB South
Africa this perception was exacerbated by the
fact that the HR department was decentralised,
with all five divisions – Automation Products,
Process Automation, Robotics, Power Systems
and Power Products – having their “own”
HR set-ups.
This meant a lack of uniformity and various
cultures within one organisation – leading to
unnecessary tensions among the divisions.
When Mohlala arrived in August last year from
Air Chefs, where she had served as General
Manager: Human Resources for two and a half
years, she was thrown into the deep end. The
company’s headquarters in Zurich had already
initiated the creation of a new structure in
which HR services would not only be received
from a single source but would actively support
the entire business in growing and becoming
more competitive.
“But even with this directive from Zurich I
could see that the structure that existed at the
time was not serving the business the way it
should be served. There was no engagement
with the business. It was an ‘us-and-them’ kind
of environment. That did not work for me at all
because, as an HR practitioner, you are
supposed to fully understand the business for
you to be able to serve it well,” says Mohlala.
The new structure – made up of an HR Centre,
three HR Partners and IR specialists – became
fully operational on July 1 this year; a culmination
of eight months of hard work. Although the com-
pany still has HR offices in the various businesses,
the culture and focus have changed completely.
“All five divisions and supporting functions now
read from the same page,” says Mohlala.
Operating along the same lines as shared services
centres, the HR Centre provides the necessary
tools required by the various businesses.
Explaining how the HR Partners work, Mohlala
says: “They are real partners to the line
managers, especially where issues of strategy
are involved. HR Partners demand a service
from the HR Centre, which it then supplies to
both the HR Partner and the business. HR
Partners report directly to the HR Director and,
through dotted lines, to business – because we
don’t want them to think they are solely HR.
“Their role is to give advice and support. You
can only do that if you understand that
particular business. They operate based on
what the business needs.”
Although it is early days, Mohlala is inundated
with positive feedback from line managers, who
When a plan comes togetherPhindokuhle Mohlala, ABB South Africa’s Group Human Resources Director, spoke to Sy Makaringe about the challenges of managing human resources for a large power and automation company.
Phindokuhle Mohlala, ABB South Africa’s Group Human Resources Director.
Human resources
Profile
11ABB InTouch �/2008 11
are beginning to see the effectiveness of the
new structure and the value they can derive
from it.
“This does not mean that previously people did
not know how to do their work. It’s a question
of whether the structure was conducive to serve
the business the way it wanted to be served.
We’re not saying we’re going to make everyone
happy. However, we’ll make the majority of
people in ABB feel they want to belong to
ABB,” Mohlala says.
As in many major South African companies,
one of the biggest challenges facing ABB’s
HR Centre and HR Partners as the company
experiences growth and undergoes expansion
is the attraction and retention skills to enhance
competitiveness and ensure sustainability.
The fact that the company operates in the
challenging engineering and technological
environment, where competition is fierce, does
not make the company’s efforts to attract and
retain skills and talent any easier.
While other companies solely focus on
recruiting so-called high-fliers to address the
critical skills shortages, ABB prefers balancing
the attraction of readily available skills with the
nurturing of promising young engineers and
artisans from the country’s various tertiary
institutions through its own tailor-made skills
development programmes.
The company has put a number of measures in
place to achieve this objective. These include:
Embarking on an extensive talent
management programme;
Rolling out a succession planning
programme throughout the company from
next year;
Improved access to top management;
Introduction of an Employee Assistance
Programme (EAP) early in 2009;
Improved communications channels, and
Improved relations with organised labour.
Through the introduction of the Employee Self-
Service (ESS) system – which enables employees
to electronically view their pay slips, apply for
leave, change their personal details and apply for
training courses, among other things – ABB has
created a workplace where employees have the
freedom and ability to take charge of their lives.
This, together with the Management Self-Service
(MSS) system, serves to free the HR Centre and
HR Partners from day-to-day administrative
functions and enables them to focus on issues
that add value to the business.
“This is in line with our vision of creating a self-
empowering environment for our employees.
That’s what is driving us,” says Mohlala.
On the employment equity front, Mohlala is
satisfied with the rising numbers of employees
from designated groups, which means the
organisation is starting to reflect the
demographics of the country.
“We have a policy in ABB that every vacancy
filled with a non-affirmative action candidate
must be authorised in this office,” she says, but
goes on to emphasise that the company will not
compromise standards just to meet employment
equity requirements.
“If we can’t get an AA candidate who meets the
requirements, then tough luck. Our recruitment
philosophy is to bring the best person for the
job, not the best person available. We don’t
settle for second best,” she concludes.
Attracting and retaining skills to enhance competitiveness is a key part of the ABB human resources strategy.
FACT�FILEPhindokuhle Mohlala has served a number of leading companies in her 16-year career as a human resources specialist.• She was recruited by Unilever as a training specialist in 1992. Four months later she was appointed
as a Human Resources Officer and Graduate Trainee. Her last position in her seven-year stint with Unilever was as Human Resources Operations Manager for Uni-Foods, one of the company’s divisions.
• She joined Robertson’s Foods in Alrode as Regional HR Manager in 1998. Her area of coverage included Gauteng, Limpopo and Northern Cape.
• A few years later she joined the aviation division of British Petroleum. She was later transferred to BP Southern Africa as Service Delivery Leader, overseeing the HR function in countries such as Botswana, Namibia, Zimbabwe and Mozambique.
• She joined Air Chefs as General Manager: Human Resources in 2005.• She joined ABB South Africa in August 2007 as Group Human Resources Director.
Human resources
Profile
12 ABB InTouch �/2008
Project managers face major challenges in overseeing and co-ordinating equipment, skills, services and resources. Pieter Bresler, Operations Manager, Power Systems Division, ABB South Africa, provides some insights into completing projects – incident-free, on time, to specification and within budget.
Getting the job done
Project management
Operations
Economic growth and increasing demand for
electricity supplies has raised the bar for
project management. In today’s environment,
the importance of on-time delivery, quality and
customer satisfaction within every project
simply cannot be overestimated.
Project managers face major challenges in
overseeing and co-ordinating all the equipment,
skills, services and resources required to
successfully complete an assignment. It requires
a skills-set that is in short supply in this part of
the world at present. The fact that skills are
leaving South Africa at the time of a major
increase in power generation requirements and
distribution capacity is testing us.
It is difficult to source experienced project
managers, so we have focused on training
suitable people for the longer term and our goal
is to have 20 trained project managers in place
by the end of 2009.
Tried�and�tested�certificationTo this end, we are placing young project
managers under older, highly experienced
project managers to ensure that accumulated
knowledge and experience is retained for the
future. This mentoring system will undoubtedly
pay valuable dividends.
Allied to this is the ABB Project Management
Certification programme, introduced to ensure
that all our project managers adopt tried and
tested methodology for consistency of approach,
implementation, procedures and paperwork.
A sudden growth in the number of projects
going out to tender caused problems as project
managers were faced with having to manage
many projects simultaneously. However, the
creation of a dedicated Project Management
Office (PMO), totally focused on providing
back-up and assistance to individual project
managers, has considerably helped us deal
efficiently with the volume of work.
The project management business unit
strongly believes each project manager must
take control of the financial, safety and quality
requirements specific to a project. Our number
one focus is safety and will remain unchanged.
Further to this, we focus on quantifying and
demonstrating the impact of the cost of
poor quality.
Achieving the highest possible quality standard
is not negotiable, simply because mistakes in
project management invariably have serious
knock-on effects. Project managers are taught to
watch “scope creep” and how to contain it to
ensure that projects are delivered without
additional costs.
Huge�demand�for�skillsIt pays dividends to match the project manager’s
personality with the project site environment.
Hence ABB project management courses cover a
wide range of requirements to build leadership
qualities, instill motivation, develop teamwork
and impart people skills – to draw the best out
of individual members of a team.
Our project managers must have the foresight to
keep one step ahead at all times, a quality over
and above conventional management attributes.
For this, specialised training is essential. The
problems posed by different language require-
ments also have to be overcome.
Huge demand for skills, not just in South Africa
but also in neighbouring countries and further
afield in Africa, has resulted in head hunting
becoming commonplace. But ABB has achieved
stability in this environment by adopting the
most professional of approaches, with an open
door policy, participative management,
encouragement of individual initiative and the
embracing of “flexitime”.
A strong base has been steadily built up over
the last 10 years, so we are able to get on with
the job, do it right, on time and within budget.
Currently the Project Management business unit
is involved in more than 80 projects and has
conducted work in a number of African
countries, including Cameroon, Ghana, Angola,
Mozambique, Zambia, Zimbabwe, Botswana
and Namibia.
The scope of work is frequently of a turnkey
nature. On a Zimbabwe substation project, the
ABB team not only cleared the land required
Achieving the highest possible quality standard is not negotiable, simply because mistakes in project management invariably have serious knock-on effects.
ABB InTouch �/2008
and made the access road to the site but also
drilled the boreholes for water supply before
conducting the civil works, the building and the
equipping and commissioning of the substation.
Specialised�management�skillsMany projects are conducted in consortium with
ABB partners from Europe. These invariably
require specialised project management skills,
which ABB in South Africa often supplies as the
project lead in the joint ventures or
consortiums. We match the people with the
project requirements and supply full-time site
managers and safety officers to ensure that all
sub-contractors operate strictly within our safety
requirement boundaries.
Project managers need to be able to cope with
sudden surprises. On one occasion, when a
substation was being built in Zimbabwe, local
farmers complained to the project manager that
they hadn’t been compensated for the use of
their land and would not allow work on site.
Good project managers are always prepared for
this type of unexpected development.
Some of our projects involve up to 250 people
(ABB and subcontractor staff) on site, so people
skills and management are a big challenge.
Project managers must be aware of the potential
risks. Each site is different and the risks must be
managed. Of critical importance is feedback to
the business unit from each project. An exchange
of information ensures mistakes are not repeated
and positive experiences of other teams in
developing solutions are shared. Very often
similar problems emerge at different projects.
High�risk�projects�ABB is currently involved in a number of major
Eskom projects, including the Matla Power Station
refurbishment of control and instrumentation and
the refurbishment of the Kendal Power Station
water treatment plant control system, both of
which are high risk projects requiring extensive
knowledge and experience.
In consortium with ABB Sweden, ABB South
Africa recently refurbished the Apollo HVDC
substation importing power from the Cahora
Bassa hydropower plant in Mozambique. This
involved replacing filters, capacitor banks,
cooling plants and control systems. A real
challenge was the implementation phase during
the Eskom load-shedding period at the beginning
of 2008. Taking a pole out of service would
remove in the order of 800MW from the national
grid so the refurbishment had to be strictly
scheduled and executed at times when the grid
could best afford to lose that amount of power.
A new substation project started very recently is
the installation of gas-insulated switchgear (GIS)
for Sasol at the Secunda plant. Civils work is
currently underway and completion of the
project is scheduled for June next year.
There is never a dull moment in project
management.
Project management
Operations
1�
Projects such as the Apollo converter station near Olifantsfontein require extensive knowledge and experience.
There is never a dull moment in project management.
Stakeholders have commended ABB in South
Africa for its environmental and energy
efficiency programmes, and for the support it
gives to groups that care for HIV/AIDS orphans.
These views were expressed at the Stakeholder
Dialogue held in Johannesburg on September 11
and attended by a broad cross section of society.
Stakeholders also identified areas where ABB
could do more, such as helping to develop busi-
nesses in the supply chain through investment,
mentoring and skills development, and promoting
ABB’s energy-efficient technologies to customers.
Their feedback will be taken into account when
planning sustainability activities for 2009.
Opportunity�for�discussionStakeholder dialogues are an opportunity to
engage in discussion with groups and organisa-
tions that have a stake in a company’s activities.
South Africa is one of several ABB country
organisations that hold an annual stakeholder
engagement meeting, and a similar event is also
organised at the ABB group level.
The dialogue was facilitated by Michael Rea of
Trialogue, an independent sustainability research
and assurance consulting organisation that
publishes the South African “CSI Handbook” and
“Sustainable Business Handbook”.
ABB’s sustainability approach and programmes
in South Africa were presented by Carlos Poñe,
CEO of ABB South Africa; Nthabiseng Dube,
marketing and communications executive; and
Chesney Bradshaw, corporate communications
and sustainability manager.
ABB has tripled spending on corporate social
investment (CSI) projects over the past two
years, mainly to support charities caring for
children orphaned by HIV/AIDS, to develop job
skills needed to help develop the economy and
to promote awareness of environmental issues
in schools.
Pone underlined the importance of sustainability
to ABB and highlighted ABB’s pioneering work
in sustainability reporting, its initiatives to attract
and retain talent, to improve health and safety,
and to promote energy efficiency.
ABB’s commitment to the environment in
South Africa, said Pone, includes investing
R400-million along with the developer in a
“green” building for its new head office,
logistics and manufacturing centre at
Longmeadow, Johannesburg. The structure
incorporates water recycling, solar heating,
energy-efficient motors and lighting, as well
as an ABB building management system. The
building, to be occupied by 1 000 employees
in 2009, also shows ABB’s commitment to the
country, he said.
Important�issue”We thank all our partners for their interest
and support of ABB,” he told participants.
“Sustainability is one of our most important
issues and we are proud of what we have
achieved. We value the opportunity to
include views of stakeholders in our
sustainability programme.”
A workshop identified sustainability priorities,
and three groups discussed key issues for
growing technical skills, developing businesses
in the supply chain, and climate change and
carbon neutrality.
Participants at the dialogue included ABB
employees and management, and representatives
from government, customers, suppliers, non-
governmental organisations and universities.
Participants at ABB’s Stakeholder Dialogue in South Africa: Phillip Toesli, co-owner of Hoseng, a supplier to ABB in South Africa (left), and Rochelle Chetty, chief advisor, climate change and sustainability, Eskom.
Stakeholder Dialogue
Sustainability
“We value the opportunity to include the views of stakeholders in our sustainability programme”
– Carlos Poñe, head of ABB in South Africa
ABB gets thumbs up on sustainability progress
ABB South Africa recently held a Stakeholders’ Dialogue to obtain feedback on its sustainability programme. By Chesney Bradshaw.
1� ABB InTouch �/2008
1�ABB InTouch �/2008
Quality and operational excellence
Performance
Cutting the “cost of poor quality” (COPQ) is
one ABB’s major goals – for if achieved it
can help to improve quality for customers,
increase employee morale and further increase
the group’s financial performance.
This is the view of Motimedi Ndala, recently
appointed Group Quality Assurance Manager
for ABB South Africa. Ndala is focusing his
efforts on ensuring that the company increases
its quality and operational excellence in line
with the ABB Group’s programme.
“Companies ignore quality at their peril,” says
Ndala. “Poor quality turns customers away,
reduces revenues and profits and results in lost
market share.”
In recent years, the ABB Group has made
quality and operational excellence a priority to
ensure that it provides higher quality products
and service to its customers. ABB strives to
promote and maintain quality standards in all
its internal and external processes to ensure
that all stakeholders are satisfied. This striving
for operational excellence focuses on flawless
execution across the value chain.
Ndala explains that COPQ is generally defined
as consisting of costs generated as a result of
producing defective material, costs of lost
opportunity due to loss of resources used in
rectifying a defect, all labour costs, rework
costs, and material costs added to the unit up to
the point of rejection.
COPQ’s�‘hidden�costs’�COPQ can be difficult for many organisations to
address because most COPQ consists of “hidden
costs” not accurately identified in traditional
accounting systems, explains Ndala.
“COPQ is typically much greater than most
managers recognise. Like an iceberg where only
10% is visible, many hidden quality costs lurk
below the surface,” says Ndala.
Most companies are aware of the more familiar
and obvious types of poor quality costs like
scrap waste and rework. ABB has long focused
on minimising and eliminating these obvious
types of poor quality costs. But the hidden
costs of poor quality are less obvious and
significantly larger. Examples of these hidden
costs of poor quality include: unnecessary
premium freight, excess or obsolete inventory,
supplier non-performance and possible
engineering and software errors.
Taking�actionOrganisations tend to neglect quality when
faced with many customer commitments, says
Ndala. But he believes that this presents an
opportunity.
“The focus ought to be on executing on-time
deliveries. In essence, companies should
expand capacities fast enough to handle
increased business.”
Attracting the right skills is an important aspect
of a company’s success as it contributes to its
growth and future development, says Ndala.
Employees are at the forefront of operations and
can provide feedback to prevent quality
problems (or “red flags”) in the value chain.
“It is important to involve all employees in the
business to ensure flawless execution,” he adds.
The adoption of good practice through
international standards (ISO 9001 2000, 14001:
2005) as well as safety standards in pursuit of
operational excellence contributes to business
continuity and supports leadership in a
sustainable manner, says Ndala.
Committed�to�performance�Institutionalised processes and procedures assist
ABB South Africa to ensure improved
performance.
“We try to maintain quality standards in internal
and external processes in all parts of the
organisation through quality of products and
services,” explains Ndala.
Quality and operational excellence for ABB
South Africa means doing everything right the
first time to ensure flawless execution.
Doing it right first timeOperational excellence is key to the competitiveness of ABB South Africa. Motimedi Ndala, ABB South Africa’s Group Quality Assurance Manager, shares his quest for quality.
Motimedi Ndala.
16 ABB InTouch �/2008
South African electricity costs are expected
to triple within the next five years, so
widespread installation of building automation
and management systems is likely to play a key
role in ensuring innovative and effective energy
savings through increased efficiency.
“With major price increases on the horizon,
which will put the country’s energy costs on a
par with the rest of the world, the era of cheap
electricity in South Africa is over,” says ABB’s
Local Business Unit Manager for Electrical
Wiring Accessories and Building Automation,
Erich Krause.
“As a result, ABB is experiencing major interest
in our home and building automation solutions
from architects, civil engineers and property
owners who have done their own projections
and calculations. They have collectively come to
the conclusion that installing an efficient and
reliable management system is key to reducing
energy costs,” he says.
It has become important to consider how to
monitor and minimise the energy costs that
accumulate during the entire lifetime of a
building. While initial planning and construction
may contribute as little as 20% to the total cost
of a building during its lifetime, overall running
energy costs are far higher and can represent as
much as 80% of building lifecycle costs.
“The good news is that, through implementation
of ABB’s i-bus EIB building automation products,
building owners can immediately realise up to
35% energy savings through increased efficiency,”
explains Krause.
In both large and small properties, the ABB i-bus
EIB system ensures reliable, convenient and
economical operation of electrical functions. A
single, twin-core bus cable replaces the variety of
traditional cables and provides the transmission
of both switching and control commands.
To the user, the heart of the system is a versatile
display and touch-screen control panel that can
be customised and programmed to control any
EIB product from around 100 independent
manufacturers that utilise the same protocol.
Each control panel, featuring a graphical LCD
with integrated backlighting, can operate up to
100 customisable switching and control functions.
The suite of products focuses on both
convenience and electrical control to deliver
energy – and therefore economic efficiency,
flexibility and security. Almost all aspects of a
building can be controlled – lighting, shutters
and heating can be co-ordinated with each
other and non-essential services disconnected
during periods of peak power consumption to
reduce overall energy costs.
In a hotel installation, for example, ABB’s i-bus
EIB building automation system offers all the
functions required by a modern hotel room and
additional advantages over a conventional
installation. The system can include convenient
and simple operation of the room functions from
a single control panel by guests, temperature
control depending on the time of year, outdoor
temperature and occupancy and even
transmission of messages to the reception.
In addition, by automating services to adhere to
the first rule of energy efficiency (switching
unnecessary appliances off) – ABB’s i-bus EIB
system realises impressive energy savings.ABB’s building automation systems realise up to 35% energy savings.
Technology
Building automation
Switching on to switching offIn response to rapidly rising energy costs, ABB’s Automation Products Division is delivering ultra-modern commercial and residential automation products – which not only enhance lifestyle but increase energy efficiency, reports Alistair Cotton.
Building automation
Technology
17
Krause explains that during hours of peak
power consumption, “local load shedding” can
be put into operation by switching geysers off,
while other services, such as the hotel kitchen,
run at full capacity.
Even the use of passageway lighting can be
optimised to save energy. When sensors register
a guest in a hotel passage, lighting brightens to
illuminate their path to or from their room.
Once they have passed through the area,
sensors instruct the lights to return to a
hibernating “dim” state, which results in further
energy savings.
By implementing the system in a hotel, a single
room can realise 14%-25% energy savings.
Automating heating results in a 7%-17%
reduction in consumption. The automation of
blinds to increase or decrease ambient light and
associated heat can reduce climate control costs
by as much as 32%, while the automation of
lighting can realise a 25%-58% increase in
efficiency. The automation of air conditioning (a
notorious consumer of electricity) can result in
a 20%-45% reduction in consumption.
In South Africa, the inclusion of building
automation to ensure energy efficiency could
mean the difference between a viable or
unsustainable project. Krause explains that in
some high-value and over-utilised areas, local
municipalities are either hesitant to invest in,
or simply don’t have budget for
new infrastructure.
“Installing a new substation in an over-utilised
area can cost many millions of rands, and
local municipalities may simply refuse to
supply sufficient electricity for a particular
commercial project on the basis that it would
put too much strain on already overloaded
infrastructure,” he says.
“In such situations, an energy consumption
reduction of 35% is not just a welcome reprieve
from increasing energy costs – it may mean
the difference between the success or failure of
in important commercial project,” he says.
Despite tremendous worldwide investment
in energy infrastructure over the coming
decades (about $22 000-billion according to the
International Energy Agency), energy supply
is under constant pressure to keep up with
global demand.
In addition, high interest rates, the current
financial crisis and the internationally
recognised need to focus on the
generation of clean energy production
can affect the future abundant supply
of electricity. In South Africa, it is
already acknowledged and expected
that the cost of electricity will
increase dramatically.
Using efficient building automation
systems in homes and commercial
buildings enhances both lifestyle
and convenience.
“More importantly, we can reduce energy
consumption by up to 35%, which is not only
desirable, but will prove to be necessary for both
the short-term and into the future,” says Krause.
Building automation systems enhance lifestyle and convenience.
ABB InTouch �/2008
18 ABB InTouch �/2008
Power�ProductsPower products are the key components to
transmit and distribute electricity. The division
incorporates ABB’s manufacturing network for
transformers, switchgear, circuit breakers, cables
and associated equipment. It also offers all the
services needed to ensure products’ performance
and extend their lifespan. The division is
subdivided into three business units.
Power�SystemsPower Systems offers turnkey systems and
services for power transmission and distribution
grids, and for power plants. Substations and
substation automation systems are key areas.
Additional highlights include flexible alternating
current transmission systems (FACTS), high-
voltage direct current (HVDC) systems and
network management systems. In power
generation, Power Systems offers the
instrumentation, control and electrification of
power plants. The division is subdivided into
four business units.
Automation�ProductsThis ABB business serves customers with
energy efficient and reliable products to
improve customers’ productivity, including
drives, motors and generators, low voltage
products, instrumentation and analytical, and
power electronics. More than one million
products are shipped daily to end customers
and channel partners, spanning a wide range of
industry and utility operations, plus commercial
and residential buildings.
Process�AutomationThe main focus of this ABB business is to
provide customers with integrated solutions for
control, plant optimisation, and industry-
specific application knowledge. The industries
served include oil and gas, power, chemicals
and pharmaceuticals, pulp and paper, metals
and minerals, marine and turbocharging. Key
customer benefits include improved asset
productivity and energy savings.
RoboticsABB is a leading supplier of industrial robots –
also providing robot software, peripheral
equipment, modular manufacturing cells and
service for tasks such as welding, handling,
assembly, painting and finishing, picking,
packing, palletising and machine tending. Key
markets include automotive, plastics, metal
fabrication, foundry, electronics, machine tools,
pharmaceutical and food and beverage
industries. A strong solutions focus helps
manufacturers improve productivity, product
quality and worker safety. ABB has installed
more than 160 000 robots worldwide.
Our businesses ABB is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs more than 120 000 people.
Technology
Fast facts
www.abb.com/energyefficiency
Energy efficiency, earnsextra light for the world.
© 2009 ABB
Using high efficiency motors and variable-speed drives, would save as much energy as the total output of 20 power stations of 1000MW*. ABB helps industry customers reduce energy consumption and lower environmental impact at the same time. To know more about ABB, the global leader of
power and automation technologies, please visit the ABB website.
*Statistics are based on energy effieciency calculations provided by ABB in China
www.abb.com/energyefficiency
Energy efficiency, earnsextra light for the world.
© 2009 ABB
Using high efficiency motors and variable-speed drives, would save as much energy as the total output of 20 power stations of 1000MW*. ABB helps industry customers reduce energy consumption and lower environmental impact at the same time. To know more about ABB, the global leader of
power and automation technologies, please visit the ABB website.
*Statistics are based on energy effieciency calculations provided by ABB in China
www.abb.com/eib
The future of megastructures.The sky is the limit.
ABB i-bus® EIB is the intelligent building installation system that meets the highest standards of building automation, being both future-orientated and highly flexible.
ABB i-bus® EIB provides increased security, economic efficiency, convenience and flexibility. Whether in office, buildings, industrial plants or residential properties.
Customised functionalities such as lighting, security, shutter control and heating can be individually adapted and con-trolled as per the requirements of the user.
For more information, please contact us on +27 (0)72 834 7457 or on +27 (0)11 653 3421 and visit us at our website.
Intelligence for your home and office environments.