For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
SIEMENSOil & Gas and Industrial Applications Services
A successfull global aftermarket organisation
Claes UebelSiemens Industrial Turbomachinery AB
Page 2 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Agenda
SIEMENS IN Brief
SIEMENS Oil & Gas and Industrial Applications ServicesOrganisation, business, heritageMission, Vision, Strategy
RegionalisationPrinciples, LevelsBusiness Charter End to End processes Certification of key functions
Long Term ProgramsStructure Remote support
Summary
Page 3 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
SIEMENSIn brief
3 Sectors 15 Divisions
■ Industry Automation■ Drive Technologies■ Building Technologies
■ Oil & Gas ( EO )■ Fossil Power
Generation (EF)■ Renewable Energy (ER)
■ Imaging & IT■ Workflow & Solutions■ Diagnostics
Indu
stry
Ener
gyH
ealth
care
■ Osram■ Industry Solutions■ Mobility
■ Energy Service (ES)*■ Power Transmission (PT)■ Power Distribution (PD)
* Financial reporting through EO, EF & ER
Siemens is a truly global company with more than 400 000 employees in more than130 countries with a profitable turnover exceeding 50 Billion Euro ( FY2009/10 )
Page 4 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Oil & Gas and Industrial Applications ServicesSynergies are leveraged by regional cooperation and global support
Organizational Set-up
E S1)
E S SF2)
FossilE S TC3)
TurboCareE S SO4)
Industrial Applications
Compressor
TrentonDuisburgHengelo
MediumGas Turbine
Finspong
Steam Turbine
NurembergDuisburg
EssenFinspong
BrnoTrenton
SmallGas Turbine
Lincoln
4 Product Lines
5 Regions with geographical responsibility
RLA Latin America
RNA North America
RME Middle East / Central Africa
REU Europe / South Africa
RAS Asia Pacific
1) Energy Service Division 2) Business Unit: Fossil Power Generation3) Business Unit: TurboCare 4) Business Unit: Industrial Applications / Oil & Gas 5) Profit & Loss
RNA
RegionNorth America
RLA
RegionLatin America
REU
RegionEurope /
South Africa
RME
RegionMiddle East /Central Africa
RAS
RegionAsia Pacific
5 Regions provide geographical view of Siemens business>14 000 employees
Page 5 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Portfolio
OEM1) service market growth is 6.5%2)
Major growth is foreseen in the medium gas turbine market (15-60 MW) OEM1) market splits into 37% Oil & Gas, 17% Power Generation, 5% Petrochemical and 41% Industry.>75% market share on own fleet
Market
Key figures (fiscal 2009)
Oil & Gas and Industrial Applications ServicesService Business Unit at a Glance
Service for Siemens oil & gas and industrial applications (OEM)1)
Comprehensive service for gas turbines(< 60MW), steam turbines (< 200 MW), compressors, generatorsService categories: spare parts, long-term programs, overhauls and repairs, modernization and upgrades (Revamps), refurbishment, lifetime extension, remote monitoring, training & consulting
1) Original Equipment Manufacturer
4 000 employees37.900 machines installed in 172 countries 18 service shops
2) CAGR FY08 - FY16 (Compound Annual Growth Rate)
Page 6 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Oil & Gas and Industrial Applications ServicesDifferent main locations and heritage united into one organisation
20001990198019701960 2003
KWU AG
Industrial Turbines
DemagDelaval
AlstomABB
BBC ASEA
ABB AlstomPower
AlstomGEC Alsthom
GEC
AEG
Westinghouse
Mannesmann Demag
Delaval
Power Generation
Industrial Applications
2006
KK&K Turbogroup
KWU
2007
E S SOProduct
Lines
Steam TurbinesCompressors Gas Turbines
Nuremberg (D), Duisburg (D), Essen (D), Frankenthal (D), Finspong (SE), Brno (CRE), Hamilton (CA), Săo Paulo (BR), Trenton (US)
Duisburg (D), Leipzig (D), Frankenthal (D), Hengelo (NL), Helsingør (DEN), Trenton (US), Springfield (US)
Finspong (SE), Lincoln (UK)
2009
Energy Service
Oil & Gas and Industrial
Applications Services(E S SO)
Service Fossil (E S SF)
TurboCare(E S TC)
Alsthom
Ruston
Fans Zweibrücken (D), Bad Hersfeld (D)
Energy Oil & GasPower Generation
Oil & Gas and Industrial
Applications
(New Unit Business)
(Aftermarket Business)
Gas Turbines (E O GT)
Steam Turbines (E O SU)
Process Compression (E O PC)
Oil & Gas Solutions (E O OS)
Page 7 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Oil & Gas and Industrial Applications Services> 50 different fleets from 15 different locations
Lincoln
Finspong
Trenton
Nuremberg
HengeloGas Turbines
Gas Turbines
Steam Turbines
Steam Turbines
Steam Turbines
SGT-100 (Typhoon)SGT-200 (Tornado)SGT-300 (Tempest)SGT-400 (Cyclone)HurricaneTD 4000TE 500TF 1200L21CL51CTA-ClassTA 1250TA 1500TA 1750TA 2500
TB-ClassTB 3000TB 4000TB 5000TB 5400
EM ClassEM 27EM 610BEM 85AEM 85B
RB211 PackagesERB 122ERB 124ERB 124C
Olympus PackagesEO 2
SGT-500 (GT35)SGT-600 (GT10B)SGT-700 (GT10C)SGT-800 (GTX100)GT 120GT 140GT35PPP3/4GT200CentaurMars
Delaval (T)
Delaval (H)
Compressors
Compressors
Delaval (T)Delaval (BFP)
Delaval (H)Delaval (BFP)
HamiltonSteam Turbines
WestinghouseFujiMHI Teaming Agreement
Steam TurbinesJundiai (Taubate)Steam Turbines
SST-50SST-100SST-200SST-300SST-400SST-600Brazil Single StageKRSTALBBC
SST-500SST-600SST-800BKTuW-0TuW-1TuW-2TuW-3TuW-4TuG-5TuW-7
Compressors
AX/ARCVKCHVKPVPVKVK/HVKSEZ/KGPRTSEEMHMVEWSC
SST-100SST-200SST-300SST-400ABMKSTUGTHVKRG&VAEGBBC
SST-700 (ST6)SST-900 (ST5)ST6VAXATPSTRadial Flow TurbineATM/TMTGMarine LavalHeat Pumps
BrnoSteam Turbines
Old PBS
BarodaSteam Turbines
SST-50 (Single stage)SST-50 (BRABB)SST-150 (Karlovak)SST-300 (ATP)
St. PetersburgGas TurbinesRecon GTK-10
Steam TurbinesAustrian Energy (AE)
Vienna
EssenSteam TurbinesGMBAEGTuG-6TuG-8
GeneratorsMotors
Avon PackagesEA 1EA 2EAS 1EAS 1-33EAS 1-34EAS 1-35AP 1AP 4DEA 2
AberdeenGas Turbines
Finspong
DuisburgSteam Turbines
Page 8 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Oil & Gas and Industrial Applications ServicesProduct Lines & Regions with entrepreneurial function
Optimizing / maximizing the order volume (incl. EBIT quality) of the respective Product Line, with particular focus on advanced salesProduct Line specific strategy, portfolio development, R&D, marketing, manufacturing footprint and technical fleet dataProviding Product Line related support (e.g. engineering, marketing, training of Field Service) to Service Regions ( Sub Regions, Countries, Home markets)
Key responsibilities
Optimizing / maximizing the wall to wall order volume (incl. EBIT Quality) of all 4 PLs within the assigned Service Region
Regional service strategy, the allocation of resources and the development of local capabilities in line with the PLs and the regionalization strategy
Strategic direction of its sub regions and direct interaction with Clusters
PL(Product Line)Energy Service RegionsStructural
element
Page 9 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Green technology focusNew unit deliveries / product quality
External ChallengesPolitical situation in key countriesCurrency exchange rate volatility
E S SO overall target is to achieve2x GDP growth and additional EBIT growth per annum
Divisional profit of above xx%OEM market share of above 75%95% on time delivery90% of all offers in less than 10 days2x GDP Growth
Regionalized service network to improve speed and customer intimacyCollaboration with EO to support new salesHigh profitability through OEM fleet focusProcess & tool optimizationUnrestricted access to documentationInnovation and Mergers & Acquisitions
E S SO Goals E S SO Top Strategies
Oil & Gas and Industrial Applications ServicesGoals, Strategy and External Challenges
* pp = percentage pointSource: E S SO M&S Day 2010
Page 10 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Fully empoweredregional service network
Regionalization is a systematic way of building local capabilities which improve our responsiveness to the unique needs of our regional customers. Market potential largely determines the appropriate level of investment in sales, field service, project management, service shop and engineering capabilities. By providing measurable additional value to our customers, the organization is rewarded with extra business, profit, and market share.
E S SO Top Strategy
E S SO Objective of
Regionalization
Speed
Customer Intimacy
Regionalization Our key strategy to provide speed and customer intimacy
Page 11 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Oil & Gas and Industrial Applications ServicesRegionalization focused on building infrastructure in top countries
Regionalization Assessment Model
Fully established serviceshop with eng. capability
Inspection facility andapplication engineering
Field Service with local value added
Dedicated and trained E S SO sales force
Local Energy Sales representative
54
32
1
Complete Regional Hub with local authority6
Business potential is the basis for selecting the level in each country and may differ between different Product Lines
Page 12 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Oil & Gas and Industrial Applications ServicesDocumentation quality & availability as prerequisite for regionalization
End to End Processes provide structure and required interfaces Data Flow
Master Data must be available to RC’s, but RC’s must maintain and
transfer data back to the PL’s.
Customers
Service product portfolio / Product Lead CentersService product portfolio / Product Lead CentersService product portfolio / Product Lines
Service product portfolio / Product Lead CentersService product portfolio / Product Lead CentersRegional Companies ( RC )
Speed Customer intimacy
Page 13 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Distribution of key responsibilities
Distribution of responsibilities along core topics: Segment, BU functions
1) Depending on the Regionalization level, responsibility for Advanced Sales can be (partly) shifted to Regions 2) Regions are supported by expert sales of PLs 3) Global Field Service 4) Global R&D
Management
Product Life Cycle
Sales
Field Service
Strategic planning
Financial planning
Service R&D
Product Portfolio Management
Service engineering
Service Marketing
Lead generation
Standard Sales
Advanced Sales
Strategic resource planning
Escalation mgmt.
Product Lines Regions BU Functions
Develop regional engineering capabilities
is part of PL's duty
Regional part in Advanced Sales is
determined by Reg. level and local capacities
Global FS function steers workload in PLs and
Regions
Joint approach btw. PLs & Regions
3)
1)
2)
2)
2)
1)
4)
Page 14 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Business Charter Defines Roles and Responsibilities between Product Line Departments
Overview
Defines:• Department responsibilities
and competencies• Key performance indicators • Reporting lines
Detail page
Defines:• Detailed responsibilities
for key processes• Interfaces and responsibilities
of interacting departments
+
October 10, 2005 Power Generation 1PG I1 Business Charter Š Rev 2.0 2005-10-10- For internal use only -
I1BD - Business Development (I)Summary
Responsibilities/Competencies
Department DOES:�Overall strategy�Market & competition�M&A and alliances�Central strategy projects�BTA planning process�Coordination of regional companies�Coordination of R&D activities�Information management�Manage TSN�Coordinate Internal & External Communication�Drive and control customer satisfaction survey (KPI)
Department Does NOT:�VGP (BE)�Training ( PLCs, Learning Campus)�Event organization, fairs (IGS, PLCs for user conf.)�Processing of standard documents ( PLCs)�IT implementation (IT)�LOA and risk management (I1B, BC)�OTMS administration
Measured on/ Key Performance Indicators
�Order growth�EBIT growth�M&A success against business plan
Reporting
Globally reports to:�-
Globally directs:�Own department
Disciplinary reports to:�PG I1
Global function
October 10, 2005 Power Generation 2PG I1 Business Charter Š Rev 2.0 2005-10-10- For internal use only -
# Key processes Responsibility of own department Interaction Responsibility of interacting department
3.1 Overall strategy
- Define core strategy - Initiate implementation- Drive growth initiative- Prepare I1 input for M&S day and P&M day- Strategic controlling/strategy tracking
I1 & I1BIGS, RegionsCS5, PLCs
Regions
- Agreement- Targets- Allocate resources - Input
3.2 Market & competition - Maintain market model- Ensure quality of fleet databases- Collect competitor data
I1xM, I1x3, RCCS4/5, PG O
- Provide and update relevant data- Maintain central PG fleet database
3.3 M&A and alliances
- Analyze opportunities for external growth, market entry and workshop facilities - Drive process: business plan, due diligence, legal issues, board approvals- Initiate and drive integration
I1, I1B, I1x
CS4/5, CFT5LS, CF MAI1x
- Agreement, allocate resources
- Support with know how- Input for business case- Responsible for integration within their Region
3.4Central strategy projects
- Coordinate and ensure I1 interests- Liaise with central departments and other GG/GZ
I1, I1xGPM
- Agreement & targets, resources- Responsible for contents
3.5 BTA planning process - Promote I1 strategic targets and cost reduction- Coordinate I1 part of BTA process
IGS, I1x, I1x3
I1x3, IGS
- Ensure I1 targets with RC
- Provide input, negotiate with RC
I1BD - Business Development (II)Interactions and Interfaces
Global function
Business charter
Page 15 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Implementation of harmonized global E2E processes for all Product Lines:Repair and Overhauls Modernization & UpgradesParts BusinessLong Term ProgramsField service
Scope extends from development of the Maintenance Strategy, through Bid Opening & Bid Preparation, Order Execution, Reporting & Ticket Closure to Invoicing
Harmonized E2E processes provide the foundations for: Regionalization (who does what where – required data and competencies)Improvement Projects Best Practice Sharing across the Service organization Standardized Measurements (MS) and NCC Reduction Integrated Management SystemCustomer Satisfaction and Profitable Growth
E S SO global Approach
E S SO Benefits
Oil & Gas and Industrial Applications ServicesGlobal and common End To End (E2E) Processes
Page 16 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Certification processKey process for competency development
Each Regional Company defines a plan for development and requirement of key functions in the country or region over a period of time.
The plan is established between each Product Line and the Regional Company and is reviewed annually
The Product Lines are responsible to develop, implement and follow up a certification processes for all identified key functions
Certification process specifies pre-requisites for the individuals, scope of training program, work experiences and mandatory tests
Certification levels specify the degree of responsibility to be allocated to the individual and the Regional Company
Page 17 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Engineering degree on Bachelor level and at least two years relevant working experience is a minimum requirement
EvaluationClassroomtraining
Hands-ontraining
On the job training
Certification processField Service Personnel ( Example )
Finspong Finspong Site
Individual training plans
Certificate
Finspong
Certification is for a limited time only and need to be frequently updated
2-6 months 1-2 months 3-4 months Basic Certification
Three certification levels:
BasicAdvancedExpert
Page 18 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Regionalisation planExample
Thailand
RLA (Andina North)
Russia
Australia
Dubai
TOMEC
Germany
Egypt
Saudi Arabia
US (Gas Turbines)
Poland
510 104
4 4
2 2
2012
18
2 2
2010
12
1 2
Actual
8
1 23
2
2014
18
2 4 4 42
2 22
2014
8
11
2012
8
11
2010
8
11
Actual
7
21
0
4330
2014
6
0 1
1
2012
5
0 1
1
2010
5
0 1
1
Actual
1
0 1
11
2116
6
2014
36
47
4
2012
28
36
3
2010
11
1 22
Actual
7
3 2
7 4 4
3
33
4
1
2014
11
1 2
2012
9
1 1
2010
7
1 2
Actual
11
0 1
221
222
2014
5
02
2012
5
02
2010
4
02
1
Actual
3
0 1
1
5 5 5 5
2014
8
1 1
1
2012
8
1 1
1
2010
7
0 1
1
Actual
7
0 1
1
1514
65
2014
29
28
4
2012
27
27
4
2010
12
1 3
2
Actual
10
0 3
2
1
2 21
1 1
1
2014
5
11
2012
5
11
2010
3
0 1
Actual
3
0 1
1
33 4
3 33
02
2014
9
11
2012
8
11
2010
7
0 1
Actual
4
1 1
4
6
0000
2014
8
0 1
1
2012
4
0 0
0
2010
00 0
Actual
00 0
Eng
SCM
FS
M&S
Page 19 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Long-Term Programs
Siemens Long-Term Programs (LTP’s) provide solutions for total coverage of the long-term maintenance needs of rotating equipment which will give our customers important advantages in terms of:
Long-term relationship Top priorityUnique services and commitments Predictable budget
Page 20 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
\
Long Term Programs ( LTP )Flexible scope and commitments
Result Peace of Mind - Increased Reliability - Increased Availability-Reduced Cost
Agreed pricing structure for Spares, Field Service, Overhauls and Service Exchanges
50% of active fleet covered
Siemens – OEM…. years of experience, Technical back-up, Original spare parts, dedicated
Customer Support Manager
Parts and work management for preventive maintenance
Unscheduled maintenance coverage.
Turn-key services
Resident Engineer
AvailabilityGuarantee
DegradationGuarantee
PerformanceGuarantee
Discount on spares / Lease engine Guaranteed mobilisation time, project manager , regular analysis.
24 Hour Global Helpdesk Service including remote connection
Contract for 24 Hour Global helpdesk service
Term warranty
Page 21 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Remote Diagnostic Service
LocalDatabase
CentralDatabase
Customer benefits:• High quality direct support, early warning & analysis
Siemens benefits:• Feedback to R&D and long term resource planning
Periodical Monitoring• Long term storage• Event and trending • Trouble shooting• Operational Statistics
Remote Connection (Siemens, Internet based)
Remote Support• On-line connection• Trouble shooting• Software updates
Page 22 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Summary
Collaboration between new sales and service is required for the success of both businesses and starts often already at project identification stage
Service products need to be standardised globally, while marketing and concepts may need to be adopted to local conditions or specific segments
Harmonisation of processes and functions between Product Lines is essential to take full benefit of the global organisation and to avoid duplications
Regionalisation is necessary to meet customer requirements, but the degree of regionalisation is based on market potential
Regionalisation can only succeed in co-operation and if there are no main conflicts of interest between the Product Lines and the Regional Companies. ”Wall to Wall” accounting principle supports.
Page 23 December 10For internal use only / Copyright © Siemens Industrial Turbomachinery AB 2007. All rights reserved.
Group / Region / DepartmentAuthor
Thank you for your attention!
This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted by Siemens worldwide, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens’ filings with the SEC, which are available on the Siemens website, www.siemens.com and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
Trademarks mentioned in this document are the property of Siemens AG, it's affiliates or their respective owners.
Top Related