101020 - UKTI Supply Chain - Briefing Deck v3 · Title: Microsoft PowerPoint - 101020 - UKTI Supply...

1October 28, 2010

Copyright 2010 General Electric CompanyGE Proprietary & Confidential

GE reserves the right to modify product specs in line with ongoing product development. No rights can be obtained from information shown on this slide

Sourcing Quality

2October 28, 2010



• Power & Water

• Energy Services

•Oil & Gas

• Aviation

• Enterprise Solutions

•Healthcare

• Transportation

• Aviation Financial Services

• Commercial Finance

• Energy Financial Services

• GE Money

• Treasury

• Cable

• Film

• International

• Network

• Sports & Olympics

• 4 businesses operating in more than 100 countries … 125+ years

• >300,000 employees worldwide

• 2009 revenue $157B

• 4 businesses operating in more than 100 countries … 125+ years

• >300,000 employees worldwide

• 2009 revenue $157B

GE’s portfolio

EnergyTechnology

InfrastructureGE

CapitalNBC

Universal

3October 28, 2010



• Drilling/production for …land, offshore, subsea

• LNG and pipelines

• Refining/petrochemical

• Industrial power gen

• Complete lifecycle services

Oil & Gas

GE Energy

Energy Services

• Power generation

• Renewables

• Gas Engines

• Nuclear

• Gasification

• Water treatment

• Process chemicals

Power & Water

• Contractual agreements

• Smart Grid

• Field services

• Parts and repairs

• Optimization technologies

• Plant management

• ‘09 revenue: $37.1BEmployees: 82,000 • Operating in 140 countries

GE Wind global footprint

GE Proprietary & Confidential

4October 28, 2010



5October 28, 2010



GE since 2002

Technology investment … ~$1B

� NPI/year 5x

� GE U.S. assembly 3x

� Key suppliers 3x

� Industry employment 6x

GE Wind growth and investment

GE Shipment CAGR ~50% … 15 Points > Industry Installs

Shipments

GE GW Growth

~5x Growth

0

2

4

6

'04 '05 '06 '07 '08

5October 28, 2010



6October 28, 2010



The Wind Energy Portfolio

1.5 SLE 1.5 XLE 2.5 XL Offshore• 97% availability

• Enhanced controls

• Lower wind speeds

• Performance �

• Expanding MMW reach

• Advanced load controls

• Utgrunden 7 x 1.5

• Arklow 7 x 3.6

• ScanWind Acquisition

Services• Performance Upgrades

• Diagnostics & Life Extension

Systems

• Grid Management

• Plant Optimization

Nearly $1B invested in technology

GE Proprietary & Confidential

6October 28, 2010



GE’s approach to offshore wind

Technology leadership providing the lowest cost of electricity for offshore wind farms with its partners

Through

• Product leadership

• Extend onshore leadership

• Built for purpose direct-drive

• Unprecedented collaboration

Delivering

• High energy production

• High reliability

• Low operating expense

• Wind farm optimization

… and the proven capability to deliver

7October 28, 2010



8October 28, 2010



Arklow Lessons Learned

Design

Transport & Access System

• Designed for In-Situ repair to reduce barge & crane costs • System Redundancy, Maintainability & Serviceability• Procedures and equipment, I.e. winches, on-board cranes• SCADA capabilities Statistic & Condition Monitoring System

• Flexible work arrangements to accommodate weather• Turbine reliability critical due to weather restrictions• Leverage through right Access System (Vessel, Helicopter)

• >95% availability in recent years • Significant downtime due to gearbox issues – combined with weather!

Availability

Design for offshore … can’t marinize onshore modelGeared design not optimal offshore

9October 28, 2010



The optimal Offshore design formula… proven over five years

Direct-Drive

Direct-drive technology natural fit for offshore:

• Simple, reliable design…reducing opportunity for failures• Slower, more reliable components• Lower maintenance costs… as well as easier and safer

The challenges:

• Higher drive-train cost pays back offshore through higher yield and lower O&M• Size and weight… importance of power density and loads mitigation• Large components… critical to develop efficient repair procedures

The GE 4.0 unique proposition:

• Unparalleled track-record for direct-drive offshore design• Modular design minimizing need for jack-up barge during operation• Tower top mass allowing to stay on monopile in deeper water (30m+)

9October 28, 2010



Delivering energy

* Estimated AEP at 10 m/s and 98% availability

** Fleet Leader target COD

Direct-Drive MMW SW 3 SW 3.5 GE 4.0 New GE 4.0Introduction 2005 2007 2011** 2011**

.

Rotor Diameter (m) 90 90 110+

Capacity Factor* (%) 48 44 54+

AEP (GWh) 12.7 13.4 19+ +42%

+10 pts

10October 28, 2010



13 direct-drive machines installed at Hundhammerfjellet (Norway)

• COD Dates: Two SW 3/90 in 2005, Four SW 3.5/90 in 2007, Seven SW 3.5/90 in 2008

• Design validated in very challenging site conditions

• Coastal location: high salinity and lightning

• High wind speed: 9.7 m/s

• Temperature ranging from –25°C to +25°C

Proven Experience

11October 28, 2010



Availability-focused Design

Redundant Operation, Automatic Lubrication, In Situ Repairs = higher availability

Automatic Lubrication In Situ RepairRedundant Operation

�

Generator bearings

�

Rotor Segments, Stator Windings,Fans

�

1/3 – 2/3 - Full

�

Drive, Electronics

��

1/3 – 2/3 - Full

�

Generator

Converters

Pitch System

Yaw System�

Redundant (4Q) operation

�

Drive

Bearing, Pinion

�

Yaw pinions, Bearing

N/AFull Repair Capability

Sourcing Quality

12October 28, 2010



13October 28, 2010



LESS OF T

HIS

MORE OF T

HIS

Sourcing Quality/Suppliers… One team

Proactive• Approve… Capability & EHS

• Qualify… Baseline

• Continuous improvement

• Development

• Auditing

• Strategy planning & execution

Challenges…• Product mix

• Localization

• Regulatory compliance

• Increase productivity

• Design complexity & margins

Reactive• Issue investigation/resolution

• Root Cause/Corrective Action

• Documentation processing

• Chasing closure of actions

• Updating plans… missed commitments

Integrity

EHSQuality

Compliance

Compliance

ComplianceThe Way

We Work

Integrity

EHSQuality

Compliance

Compliance

ComplianceThe Way

We Work

Activity…

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Sourcing Quality simplified…

QUALIFICATION:The GE process that determines when a direct material contract is valid & may decrease its longevity.

Which path are you on?

� Metrics management� Opportunity reduction� Understands requirements� Continuous improvement plan� Quick response � Resolution sharing

� Escaping defects� High internal defects� Unaware of requirements� Audit finding closure cycle� Slow response� Recurring SDR’s

?

15October 28, 2010



Cost of defects in the field

• Reduced by quick response & containment

• Must reduce opportunity

• Re-focus on final validation… developing new strategy - 3Q 2010

• No recovery for reputation

Defectfound @ operation

Defectfound @ final inspection

Defectfound @ assembly

Defectfound @ site/field

REPUTATION IMPACT

16October 28, 2010



Supplier Monitoring

• Proactive… find issues before they appear in the field

• Focus activity… cross auditing, procedural modifications, & SQE training

• Findings rigorously managed & closure timing enforced per Terms

• Quality system audits… review supplier audit process & findings

113199

57

356

'08 '09 '10 1QTR

ScheduledAudits

Evaluate your own internal audit process

17October 28, 2010



Sourcing Quality Audit Definition

QMS Audit

Product Audit

Process Audit

Can your quality system

comply with ISO standards?

Quality Management System

Is the product 100%

compliant to requirements?

Op 10 Op 20 Op 30

InspectShip

Is the process

100% compliant?

NDT Process

18October 28, 2010



Regulatory compliance

Any miss can impact reputation/cost/cycle of GE, supplier, & customer

GE Energy statement of Policy on technical and regulatory compliance:

Ensuring strict compliance with laws and regulations pertaining to the quality, safety and performance requirements in every country where GE Energy’s products and services are offered

QUESTION, VALIDATE, DISCLOSE

• Clear definition & recognition of compliance need

• Full supplier cooperation at all levels… validation & documents

• Proactively understanding & executing to the requirements

19October 28, 2010



Communication & Clarification

• Sub supplier qualification

• Qualification requirements… Cost & cycle

• Requirements clarity & exceptions… PO acceptance

• Lean activity & process changes

• Scorecards & Quarterly Supplier Reviews

• Shipping on SDR

20October 28, 2010



Summary

• Right Partner for Offshore

• Right Product for Offshore

• Building on Onshore success for Offshore

• No sacrifices on Quality

• 10 per week -> 13 per day

20October 28, 2010



Track Record to Maintain

101020 - UKTI Supply Chain - Briefing Deck v3 · Title: Microsoft PowerPoint - 101020 - UKTI Supply...

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