101020 - UKTI Supply Chain - Briefing Deck v3 · NBC Universal. 3 October 28, 2010 Copyright 2010...
Transcript of 101020 - UKTI Supply Chain - Briefing Deck v3 · NBC Universal. 3 October 28, 2010 Copyright 2010...
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
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
• 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
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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
• 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
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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
5October 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
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
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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
6October 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
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
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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
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
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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
8October 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
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
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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
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+)
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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
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
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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
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
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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
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
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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
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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
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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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 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
?
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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
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
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Copyright 2010 General Electric CompanyGE Proprietary & Confidential
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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
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356
'08 '09 '10 1QTR
ScheduledAudits
Evaluate your own internal audit process
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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 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
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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
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
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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
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
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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
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
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
Track Record to Maintain