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Schneider Electric Integrated Management

System (IMS)

Management Systems for Enterprise Compliance

NAEM 2015 EHS Compliance Excellence Conference 20-21 May2015 | Atlanta, GA

2 Confidential Property of Schneider Electric

Agenda

> Introduction to Schneider Electric

> IMS project benefits

> Overview of our MS Landscape (Before & After)

> Project approach

> Lessons learned

3 Confidential Property of Schneider Electric

Schneider Electric, the global specialist in energy

management and automation

Balanced Geographies FY 2014 revenues Diversified End Markets FY 2014 revenues1

25% North America

19% Rest of World

28% Western Europe

28% Asia Pacific

25 billion FY 2014 revenues

~170,000 people in 100+

countries

~5% of revenues devoted

to R&D

1 Estimated at the end of 2014

Utilities &

Infrastructure

Industrial

& Machines

Data Centers

& Networks

Non-residential &

Residential Buildings

27% 26% 14% 33%

4 Note: no EPC selected EPC commercial model will be clarified in a second stage

Waiting clarification considered as Targeted Account but no change in existing commercial coverage

Some of Our Brands

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Oil & Gas

Note: no EPC selected EPC commercial model will be clarified in a second stage

Waiting clarification considered as Targeted Account but no change in existing commercial coverage

Mining, Minerals, Metals

Water & Wastewater Food & Beverage

Some of Our Customers

http://www.google.com/url?url=http://commons.wikimedia.org/wiki/File:Logo_petrobras.gif&rct=j&frm=1&q=&esrc=s&sa=U&ei=0J02VNTFKoeMyATN-YKgDw&ved=0CBYQ9QEwAA&usg=AFQjCNHAoS4kPapJ1zvCYQfvFNlhKDJUeA

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Schneider Electric Integrated Management System

ISO14001 OHSAS 18001

ISO9001

ISO50001

IMS The MS components include:

ISO 9001: Quality Management

Systems

+

ISO 14001: Environmental

Management Systems.

+

OHSAS 18001: Occupational Health

and Safety Management System.

+

ISO 50001: Energy Management

System

The scope includes

Global Supply Chain

Manufacturing & Logistics

+

Business Units R&D & Design

Centers

+

Operations Sales, Service &

Customer Support.

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Main Project Drivers & Key Benefits

> Global efficiency, consistency & simplification

> Global platform to deploy global initiatives effectively

> Facilitate global best practices sharing

> Facilitate the integration of mergers & acquisitions

> Cost savings through reduced auditing (>30%)

> Reduced audit burden

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Cost Savings

Source :

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BU Operation GSC Region

Power Energy Building APAC NAM EMEAS Industry ITB* EMEAS NAM APAC

E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2

Environment

ISO14001

H&S OHSAS18001

QC Quality

ISO9001

Entities

QC QC QC QC QC QC

EC

SC

QC

EC

SC

QC QC QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

QC

EC

SC

SHE&Q Management System (Before)

Note: QC=Quality Certification (ISO 9001)

EC=Environment Certification (ISO 14001)

SC=Safety & Health Certification (ISO 18001)

AsiaPac

IMS

* Includes factories

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BUs Operations GSC Regions

Partner

E1 E2

Environment

ISO14001

H&S OHSAS18001

Quality

ISO9001

Entities

Integrated Management System (After)

Indust. Energy ITB G. Sol. NAM Global China China EAJP India SAM NAM EMEA-P EMEA-E CIS

E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2 E1 E2

Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

E E E E E E E E E E E E E E E E

S S S S S S S S S S S S S S S S

IMS:

Under GSC Leadership

IMS w ISO 9001+14001+18001

Covering All entities

Audit: Sampling of entities in 3 yrs

Total Cost for 3 yrs: < 1/2 of normal

Note: Q=Quality Certification (ISO 9001)

E=Environment Certification (ISO 14001)

S=Safety & Health Certification (ISO 18001)

Q Q

Energy

ISO50001

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Certification Integration / Globalization

Good Practices

Source :

* CB = Certification Body

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China 30

EAJP* 33

India* 32

AP Pilot (Phase I): By 2015/5: 85 entities

By 2015/7: 95 Entities

NAM 36

SAM 24

EMEA TBD

Phase II (initiated 2014/9)

Phase III (start 2015/9)

# of Total Entities may change as we may add/close entities later

CIS TBD

*including: - India Ops

- EA Ops (6)

IMS Progress & Plan

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Business Units

GSC

Operations / Zones

/ Countries

One Global IMS

Manufacturing Sites

Logistic Centers

Research & Develop Sites

Design Centers

* Note:

No. of certificates are estimated with 9001, 14001 and 18001 together . 50001 maybe added later.

Customer Care Centers

Service Organizations

Solution Centers

Commercial Offices

400+ 1 GSC

200+ 2 BUs

100+ 3 Ops

Three Key Components No of Certificates*

GSC (First Step)

New Organization (2013)

VisionOne Global Schneider Electric IMS

All BUs (Second Step)

All Ops (Third Step)

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IMS Central Office

GSC Top Management Team: EVP of GSC

Management Representative of QMS: Senior Vice President, Global Customer Satisfaction & Quality

Management Representative of EMS: Vice President, Group Environment

Management Representative of SMS: Vice President, Global Safety

Project Owner: Vice President, Global Quality System & Competency

Process Owners: 1) Customer Satisfaction & Loyalty Development, 2) Customer Issue to Prevention, 3) Competency Management, 4)

Continuous Improvement, 5) Management System, 6) Safety, 7) Environment

Rep. of Global IMS

Rep. of IMS China

Rep. of IMS India

Rep. of IMS EAJP

Rep. of E&S China

Rep. of E&S India

Rep. of E&S EAJP

Rep. of Global E&S

Rep. of IMS NAM

Rep. of IMS SAM

Rep. of E&S NAM

Rep. of E&S SAM

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IMS Internal Agreement

The IMS Central Office and entities shall sign an internal

agreement before certification commencement. This

agreement shall signed by Entity Management, IMS Region

Representative, and IMS Global Team.

When to sign this agreement:

An entity joins the IMS

The start of another 3 year circle

Change of certification type

Agreements to be maintained in IMS Database

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Lessons Learned so far!

> Communication (early and often) and Leadership is

key

>Wider engagement in pilot

> Integrate systems at the plant level early

> Standardize as much as possible

>Thorough advance planning of audit process

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Unexpected Benefits so far!

> Quality team is leveraging best practices from E&S

> Energy team jumped on the bandwagon

> Standardization moving along rapidly

> More focus on compliance auditing

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