KU Leuven guest lecture

The golden triangle

Guest Paul Frigne, Atlas Copco

Chair Professor Joos Vandewalle

May 14th 2014

me, in brief

U Gent

Von Karman Institute for Fluid Dynamics

Switzerland R&D – center

Atlas Copco Airpower Wilrijk

Atlas Copco Belgium & Netherlands

Atlas Copco France

Atlas Copco Airtec division

Pneurop - EU Affairs

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Facts in brief

Founded in 1873in Stockholm

The Atlas Copco Group

Employees 39,800

Annual revenuesBSEK 90,5 (BEUR 10,5)

Operating margin 20.5 %

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These figures date from 2012.

Product Portfolio

A4

Atlas Copco : facts in brief

Founded in 1873 in Stockholm

The Atlas Copco Group

Atlas Copco Compressor Technique

Employees 37,500 14,100

Annual revenues BEUR 9 BEUR 3.5

Operating margin 21.6 % 23.9%

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These figures date from 2011.Compressed air equipment and solutions

Gas compressors, expanders,

cryogenic pumps

Specialty rental

Supporting a wide variety of industries

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Food & beveragesOil & gasServices & utilities

Automotive& marine

Construction & mining

Process & manufacturing

Electronics & semiconductor

Chemical & petrochemical

Medical & healthcare

Textile Renewable energy

Air separation

Belgium : Atlas Copco in a snapshot

Airpower Compressors

Wilrijk

Belux Customer Center

Overijse

Power Tools Distribution

Hoeselt

Rental Europe

Rumst

AC Finance Belgium

AC Finance Europe

AC ASAP Europe

International Distribution

Wilrijk

Airpower Construction

Wilrijk

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Atlas Copco employs 3.252 people and realizes 18 % of the Group sales in Belgium

Airpower in Antwerpen : HQ of Compressor Technique

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� Arpic Works acquired in 1956

� All production & research of

compressors moved to Belgium

� 130,000 square meters

� Most advanced R&D-center

� Revenues 1.548 m € in 2013

� 2622 employees (FTE) :

1358 BC & 1264 WC

� 661 engineers

� 374 R&D engineers

� 40 nationalities employed

Being an engineer …

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Divisional O & O structure

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Division

Finance &

AdministrationHuman Resources

Engineering Production Process Purchasing Production Marketing

O & O >>>

Current Production >>>

Divisions Airpower• Airtec• Industrial Air• Oil-free Air• Quality Air• Portable Energy• Service• Rental

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Product Development Process

X107 Procure / Assy / Test

X107 - BOM

X616 (95% OK)

DN's

1616

DN's

Feasibility Func. Proto Prod. Proto PiBa

Product

Process

Master Spec

PROVEN

TECHNOLOGY

CONCEPT

process

Approved

Invest. application

Pre-acceptance Acceptance

Run

+ Pre-Q

Purchase A-suppliers

defined suppliers defined

BB+ C+

Order tooling & proto

+ Qualification

Order PiBa

RED BOOK

Designfrozen

Designfrozen

CustomerSpec's

Customer

approval

CONCEPT

design Procure

Assy / Test

Follow-up

APC

Prel.

APC

Final

All suppliers defined

Final

Qualification

GATE GATE GATE GATE

Sign off

master spec

All tooling tested

Start Close

FinanceFeasibility StudyOpening form

Project Opening Form& Budget

CapitalisationD & D costs

Startdepreciation

Closeproject

Being a PhD …

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for compressors

Validate

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Basic Development

Example : high-speed

direct-drive turbo

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FWO 85th Anniversary

Why are we in Belgium ?it’s our history : Arpic works

fully integrated set-up : a crown jewel in Belgian

Industry

innovation is our driving force

the University of Compressed Air

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Create Value

Cut Cost

The golden triangle

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No innovation without production

No production without competitivity

Innovation

ProductionCompetitivity

What is good in Belgium ?Competence

Infrastructure

Society

Incentives

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Universities : Leuven, Gent, Brussel, Luik

Techno Centers : Sirris, FMTC, VITO, IWT, FWO

Financial know-how : Financial HQ moved to Belgium

@ the centre of Western Europe

dynamic layer of SME

close to Business Partners

multilingual , social, cultural society

stable relation with social partners

Incentive for R&D engineers

Support for training & IP

What is challenging in Belgium ?Wages

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What is challenging in Belgium ?Wages

Salaries

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What is challenging in Belgium ?Wages

Salaries

Acquired rights

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Index

Bridge pension

What is challenging in Belgium ?Political stability BE

Stability EU & euro

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541 days to arrive …

What is challenging in Belgium ?Political stability BE

Stability EU & euro

Legislation EU

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541 days to arrive …

How to create value ?

know your competitor

add features &

extend the offer

make differentiated

value propositions

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Benchmark

China : be there !

Glocalization : local to global

Energy requirements

Environmental footprint

Connectivity

How to cut costs ?

Production

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gear up for product variability

rethink manufacturing processes

get lean !

achieve 100% delivery performanceBefore

After

How to cut costs ?Production

Products

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gear up for product variability

rethink manufacturing processes

get lean !

achieve 100% delivery performance

keep product core knowledge

outsource non-core competences

reduce time-to-market

Gecia

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COMPETENCES

SYSTEM

DESIGNCAE DOCUMENTATION

SOFTWARE

DEVELOPMENT

TECHNICAL

LITRATURE

MECHANICAL

DESIGN

FEA CFD

Instrumentation & Controls – P&I 's

Electricals -Cubicles / Single line Diagram

PLC Program

Customized AIBSystem Diagram

ASLAssembly Instructions

C / LinuxMicrosoft .Net

Lotus Notes

HOSES & FLEXCASTING / MACHINING

SHEET METALH. FAB & PIPING

SPECIALSCooling System

Packaging PLASTICS

GECIA – Competences

Designing Data entryGBP Upload

Animation

Tooling

Most interestingis

what I did not saybut

you will ask

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