Terex Equipment Ltd “Back From The Edge” · Terex Equipment Ltd “Back From The Edge” ......

1

COMPANY CONFIDENTIAL

Terex Equipment Ltd

“Back From The Edge”

A Leader's Strategy to Recover in Global Recession

Paul Douglas 29th August 2013

2

COMPANY CONFIDENTIALLet’s Get Started

•This presentation will cover:

Introduction to Terex as a company

Terex Corporation

Terex Equipment Ltd.(TEL)

The Recession Impact on TEL

Back from the Edge – the factors which helped drive the

recovery……

…and the overall business improvements which have been

delivered along the way

3


Introduction to

Terex Corporation

4

COMPANY CONFIDENTIALWho are we………

5


Customers

ShareholdersTeam Members

Our Vision is built upon………

6

COMPANY CONFIDENTIALOur Purpose, Mission, & Vision

Our Mission:

To provide solutions to our

Machinery & Industrial Product

customers that yield superior

productivity

and return on investment.

Our Purpose:

To help improve the

lives of people around

the world.

Our Vision:

•Customer – to be the most customer responsive

company in our industry as determined by our customers.

•Financial – to be the most profitable company in our

industry as measured by Return on Invested Capital

(ROIC).

•Team Member – to be the best place to work in our

industry as measured by our team members.

7


7

Global Reach………..Local Presence

• International company quoted in NYSE

• $7.3b sales in 2012

• 5x Business Segments

• 22,000 team members

• 80 production facilities worldwide

• Regional offices around the globe

• Sales in more than 170 countries

8


Construction Roadbuilding

A TEREX Product for Every Requirement

Transportation EnergyRecycling

Mining

9

COMPANY CONFIDENTIALDiverse Product Portfolio……

10


Introduction to

Terex Equipment Ltd

11


TEL: Our DNA and our History

12


One of only three genuine providers of both rigid and

articulated dump trucks for mining, quarrying, and

infrastructure application with significant growth potential.

• Rich history and expertise with dump trucks

� Large fleet population

• Comprehensive product portfolio

• Global end market diversity

�Well-positioned in multiple high growth mining

markets

�Diverse commodity exposure

• Experienced leadership and dedicated team members

Highlights

13


MOTHERWELL, SCOTLAND

TEAM MEMBERS: 440

TOTAL SIZE: 28,000 m2

Over 60 years of expertise

International customer base with more than 95% of trucks exported

Truck Manufacturing in EU

14


Terex produced its

first ADT in 1982 –

The 3204

We are still producing 30 years

later, 2012 – The TA300 Gen9

Only one other OEM in this industry has been designing and

manufacturing ADT product longer than us

Terex Articulated Dump Truck Heritage

15

COMPANY CONFIDENTIALTerex Rigid Dump Truck Heritage

Over 60 years design, manufacture and support

from the Motherwell site.Truck heritage going back to 1930’s

1950 Terex produced its first RDT at

Motherwell Present Day

16


TA250

300 hp

25.0 ton payload

TA400

450 hp

41.9 ton payload

TA300

385 hp

30.9 ton payload

Comprehensive Truck Product Range

ADT(64% of

volume 2012)

TR35

400 hp

35 ton payload

TR100

1,050 hp

100 ton payload

TR70

760 hp

72 ton payload

TR60

700 hp

60 ton payloa

TR45

525 hp

45 ton payload

TR60 T4i

710 hp

60 ton payload

NEW

RDT(36% of

volume 2012)

17

COMPANY CONFIDENTIALTerex Trucks Around the World

*Since 2006

Middle East

Asia Pacific & Oceania

South America

North America Europe

Africa

18


Source: Company Management

Diverse end markets

Global End Market Diversity

Revenue by Commodity

Well-positioned in major truck

markets globally.

Revenue by Region

2012 Revenue: $374 M

7.6%

34.7%

2.2%

30.9%

0.4%

0.6%7.8%

2.8%

2.2%

9.4%

W.Eu

North America

ANZ/Japan

China

India

LATAM

Russia / E.Eu

Middle East

South East Asia

Africa

41.0%

9.0%

6.0%

44.0%

Coal

Ferrous

Non-Ferrous

Infrastructure

19


RDT / ADT RDT

Surface Mining

Coal

Sand.

Limestone

Diamond

Granite

Copper

Tin

Phosphate

Source: Company Mgt

Where We Participate

Focus on highest value added applications

Quarrying

Gold

ADT / Small RDT ADT

Construction

Infrastructure

Highways

Military

Underground Mining

Dams

Recycling

Airports Forestry

Special Attachments

Land Preparation (renewables) Lubrication/service trucks

Oil & Gas Water tankers

Niche

Applications

Railways

Commercial Property

Zinc

20


The Edge: The Global Recession

& Impact on TEL

21

COMPANY CONFIDENTIAL…Most commodities were deflated/erratic…

22


-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

-50

0

50

100

150

200

250

300

350

400

2007 2008 2009

Total Net Sales

Income from Ops

Op. Margin %

The recession impact on TEL performance..

• At the worst part of the recession, TEL losses reached -$26M

• OK, having a Corp umbrella is helpful, but this level of performance

was unsustainable

• The business was being affected in many areas.

23


People Product

ProcessPerformance

We were impacted in all of the areas………

Headcount reduction was

necessary during the

downturn – affected all

areas, and attrition

increased as TM’s

looked elsewhere

Legislation driven new

product programmes

badly affected by

lack of resource,

and loss of

key skills

Depleted resources,

loss of key skills meant

weak processes were

exposed, and short cuts

Taken around robust processes

And business

performance

deteriorated as a

result of these global

and market forces

24

COMPANY CONFIDENTIALWe saw our Market Share erode……..

25


Established Competition

New Truck OEMs Emerging Market

Threat

New product leaps (fast evolutions)

Investments in Development / Technology

Local for Local Manufacture

Established or Strengthening Brand Perception

John Deere separated from

Bell, now entering ADT

market with own brand.

Liebherr enter ADT market

Doosan acquire Moxy and

develop their ADT foothold

OEMs from ‘Emerging

Markets’ begin to reach out

to new sales territories

Belaz ADT development

Beginning to establish

foothold in Asia, Australia,

Americas.

Sany America established –

initially excavators.

NHL infiltrating African,

Russian, Asian markets

….the competition increased….

26

COMPANY CONFIDENTIAL…general global climate…changeable….

cloudy with bright spells and rain likely…!

Economic

indicators/DriversImpact Reasons/Comments

Government

regulations

EU & NA Emissions and safety compliance regs are challenging, but present us with differentiation

opportunities – emerging markets products tend not to pursue compliance

Material costIncreased inflationary pressures (steel, copper, etc). H1 2013 trends suggest slow down in

demand for primary resource commodities.

Consider neutral because everyone in same situation.

Energy CostEnergy costs have increased and continue to rise.

Medium to long term - fuel economy is an increasing factor.

Economic Conditions

Improvement in BRIC were offsetting persistent weakness in W.Eu and N.A

USA coming back but slowly - housing starts, non-res construction, unemployment

China has gone off the boil – big driver of coal price dropping.

Russia hard to predict - Africa/Mongolia still present significant opportunity.

Technology TrendsDeveloping lowest cost of ownership. Removing driver decisions/driver. Green and clean – but is

the customer willing to pay a premium? Carbon reduction – coal future?

Consolidation of

Players

Many companies went under, or were taken over. Lots of cash on balance sheets, we expect to

see more acquisitions, divestitures, spin offs as companies focus on core competencies.

OEM/Supplier

Relationship

Increased need for OEM’s to develop relationships with large end users (Rio Tinto, etc)

Suppliers are suffering - major risk around financial and political stability

End-User trends

Protecting cash, looking for attractive financing, rent-to-buy, rent-to-rent, power-by-the-hour,

anything other than spending large capital amounts.

Looking for OEM’s and channel distribution to take care of the units.

All looking for price reduction, extended terms, and give-aways – maintenance, warranty, etc.

Industry Forecast

2011~2012 forecast was improving over previous forecast periods……..trending in right

direction…..just not very large!

Now indicators suggest swing to downward trend

2013 we are seeing softening of markets, some slow growth in geographical pockets

27

COMPANY CONFIDENTIAL…it was the perfect storm…..

28


Back from the Edge – the factors which

helped drive the recovery……

29

COMPANY CONFIDENTIALWhere to find the magic pill…….

• There was no quick fix

• The TEL Leadership team had to fully understand the situation,

and plan a way through this.

• Sticking to basics, it has worked in the past and served us well

during this period;

• Triage, Rationalise, Mobilise, and plan for the future

• Organisation – get the right people on the right seats

• Communication – keep everyone fully appraised during

each stage, at the appropriate level

• Focus on the People, Product, and Process improvements

30

COMPANY CONFIDENTIALTurnaround Roadmap

Phase 1

Triage

•Installed new leader

•Where are the fires

•Organise the business

leadership team – clear

roles and responsibilities

•Agree the priorities –

make them the short

term business targets

•Who does what agreed

First things first…….

Phase 2

Rationalise & FocusTurnaround Activities

• Roll out main business focus

•Focus on what we can control

•HSE

•Margin Improvement

•Cash generation

•Reduce NWC

•Op Excellence

•Customer Responsiveness

•Quality & reliability

•Alignment, delegation, shared

goals and objectives

Phase 3

What’s nextMore sophisticated planning

• As the business stabilises,

how to grow for the future

•Development of a broader

strategy for the business

•Market downturn cycle

reappears much sooner

than expected

•Focussed Management

team are able to move

quickly to respond to short

term issues

31


GM

Paul Douglas

Business

Improvement

TBS

Prod.Mgt.

NHL Bus Mgr

Project Manager

Operations

Alan Noble

Man Eng

Production

Facilities

Comm. Sales

John Mlonek

HR

Paul Tierney

Cust. Resp

Campbell Blake

Prod.Support

Quality &

Reliability

Prod.Training

Customer Info.

Aftermarket

H.S.E.

G.Meighan-Watts

Materials

Paul Hudson

PCD

Purchasing

Warehouse

Engineering

Dave Maslin

Current

NPPD

Development

Electrical

Conformance

TIRC Support

Finance

Kevin O’Donnell

IT

Caroline Noble

IT (Local)

Office Mgr

Julie Thomson

Source: Company Management June 2013 Staffing report

Note: Numbers indicate team size and LOS

4257 30 24 53 32 9 3

26

440

TEL Leadership Team

5

34144

11

8 4 4 14 8

101 years service in Senior team

32

COMPANY CONFIDENTIALStakeholder disposition is a factor…….

Involvement

ForAgainst

The Enemy

The Cynic

Fence Sitters

Willing Helpers

Change Champions

33

COMPANY CONFIDENTIALCorporate also provided a steer where to go….

34

COMPANY CONFIDENTIALTruck Market Dynamics Improved

•New products gaining traction

•Dealer development is key

•Increased vehicle quality achieved

•Focus on customer service

Source: Management analysis of industry databases

35

COMPANY CONFIDENTIALGlobal Demand Driver for OTR trucks;

Coal & Iron

Top 10 coal producing countries

World demand for mining equipment

36


Cost Effective Operating Structure is Required

Return On

Invested =

Capital

Net Operating Profit After Tax

(NOPAT)

Average Debt – Cash + Adjusted

Stockholders Equity

In other words:

A KEY Company Performance measure

Net Income

Invested Capital

Unlocking the Shareholder Value: ROIC

37

COMPANY CONFIDENTIALPerformance Management cornerstones…

SalesFinance

Ops All Areas

Finance SalesSales/PCD /

Supply Chain

Net

IncomeInvested

Capital

Working

Capital

Net Fixed

Assets

InventoryReceivablesPayables

Expenses

ROIC*

• Better management

of Inventory

• Improved logistics

•FGI focus

•VMI

•Safety stock

•3PL

• Terms reduction

actions

• Improvement on

Credit Analysis

• Increase of TFS

penetration

•Cashing LC’s early

•Maximise

payment

terms

Action Plan

•Lean enterprise

•Cost Center

Ownership

•Monthly Reporting

and focus

•Expenses controlled

•Cost reductions

•Engineering &

project spend

controls

•Material cost

•Productivity

•Reduced

wastage

•Freight

savings

•Absorption /

recovery

•All cost

centres closely

managed

• Pricing Strategy

•Fair market

Values

•Cost of

Ownership

arguments

•Financing

•Trade ins

•Residuals

•Spares

• Capex Plan

*Net Income

Invested Capital

Price Cost

Action PlanAction Plan

Action Plan

Action Plan Action Plan Action Plan

38

COMPANY CONFIDENTIALHang it all together……..strategy??

Financial

Perspectives

Customer

Perspective

Internal

Perspective

Learning &

Growth

Perspective

Productivity

Strategy

Growth

StrategyROIC

Improve

Cost

Structure

Improve

Asset

Utilisation

Drive

Revenue

Increased

Customer

Value

Price Qual. FunctAvail. Serv. Partner Brand

Customer Value Proposition

Product/Service Attributes Relationship Image

Operations

Management

Manufacturing

SCM

Quality

Lean/efficiency

Transformation

processes

Customer

Responsiveness

Delivery

Reliability

Uptime

Spares

Service

Retention

Innovation

Process

Opportunities

R&D Pipeline

Design

JV partners

USP

Service ideas

Regulatory &

Social Process

HSE

Business Compliance

Employment Law

Governance

Community

Citizenship

Human Capital

Information Capital

OrganisationCulture Leadership Alignment Teamwork

39


designed around a career development and

strategy execution systemdesigned around a control-oriented system…

Personal Accountabilities

Salary Administration

CompensationTraining

Employee Development Reviews (EDR)

From a

compensation focused process

To a

performance focused process

Compensation to reward individual and team contributions to the strategy

Succession and Development Planning for

cross- organizational development

Performance Appraisals to evaluate individual achievement of strategy

Strategic Performance

Performance & Development Process (PDP)

Bonus

Performance Appraisal

Training to close performance and

skill gaps, and change behavior

HR Programs Must Be Aligned with Strategy

40


• What might Terex Truck Goals

Look Like

• RDT Market Share 7%

• ADT Market Share 7%

• Turnover $540M

• OEM $380M

• Kits $100M

• Spare Parts $60M

• OP est $45M (8.3%)

• Investment and development in

RDT product line ($20M)

• Local Employer of Choice

• World Class Customer Experience

Truck Strategy….the future goals

Terex Strategic Goals and Objectives –

•Sales >$500M and beyond.

•Operating profit >6% minimum -target 10%

– we must embrace a growth culture, and pull as many growth levers as possible:

And at the same time, deliver excellence in;

Safety

Operations

Customer Responsiveness

New Markets for

Truck Product

Innovation

Acquisition

Brand leverageMarket drive

GROWTH

Growth

Culture

41


Market

Growth

Targeted

Channel

Development

Joint Venture

Growth

Sales, Service,

and Logistics

Improvement

• Stronger global

distribution

• Support further

development of long-

standing joint venture

with NHL in trucks

• Aggressive growth in

Russia, driven by RM

Terex

• Improve product

sales effectiveness

via dealer and

internal capability

development

• Specifically focus on

service growth in

areas where product

densities are high

• Optimize product,

parts, and service

logistics to target

regions and drive

improvement in

profitability

EU/US Product Development??

Financial Services Development

Rental Channel Penetration and OEM Expansion

JVProduct Development

Coordination and Collaboration with Other Terex businesses

Strategy for Growth

Direct Sales to

Large

Customers

• Continue developing

private label and direct-to-rental sales

• Work with developing

markets teams and other Terex businesses to

develop volume selling

opportunities globally

• Continue modifying

distribution agreements

to facilitate direct selling

at an appropriate cost

• Work collaboratively

with dealers and other

businesses to enable

service after sale

Global Coordination

42


Terex Trucks plants in the world, current and future

ChinaScotland,

UKRussia

Global Manufacturing

India Brazil

• Minimise restrictive tariffs etc and their impact on TEL ability to sell

• Reciprocal beneficial trade deals intra trade regions

• Importing kits challenges and trade rules.

• Need to assess geographical supply base capabilities and risk

• Need to assess existing TEREX capacity and capabilities

• Develop plan and ‘does it make sense’ table

Established Established Established Footprint Future

43


Product -in-a-Box

Sales Enablement

Training

Excellence

Pricing &

PromotionsSelling Incentives

• Turn key for sales and

dealers

– Informative

– Excitement

– Credible

– Differentiated and

ownable

– Up-to-date

• All-inclusive, selling

kit

– Terex story

– Value prop & KSP

– Visuals

– Testimonies

– Technical specs

– Competitive comp

• Available in multiple

mediums (kit, web)

• Boot Camps and

Mobile Boot Camp

light

−Train the dealer

−Train the end-user

(dealer/operator

• Classroom and on-

hands curriculum (e.g.

Central Europe)

– Getting the best use

– Competitive

comparisons

–Maintenance

• Regional training

−EMEA, Americas, Asia

−Training excellence

• Other methods (web)

• Accreditation program

• Competitive pricing

−Margin and

marketplace balance

• Financing programs

• Non-financing

promotions

– Service

–Warranty

– Adjacent products

• Aggressive Variable

comp structures

• Sales rep worldwide

recognition

• Dealer “Winners

Circle”

• Feet-on-the-

street/site

(Merchandising

model)

– Frequent visits to

dealer stores/job

sites

– Ad hoc training

–Materials distribution

–Order taking

Truck Strategy: Sales Enablement

44

COMPANY CONFIDENTIALYesterday, Today, Tomorrow….Corp view

2012

Solid Execution

Margins +ve

$7.3B Revenue

$0.5B OP (6.4%)

$0.5B Cash

ROIC up to 8%

EPS up

Debt Reduction

2013 2015

Optimistic…!

Q1&2 mixed

performance,

some +ve and

some –ve

Revenue $8.3B

ROIC 11%

OP 7.5%

Goals

Established

$10B Revenue

$1B OP

$5 per share

15% ROIC

45


Back from the Edge –

…and the overall business improvements

which have been delivered along the way

46

COMPANY CONFIDENTIALTurnaround Roadmap

Phase 2

Rationalise & FocusTurnaround Activities

How are we doing…….

• Roll out main business focus

•Focus on what we can control

•HSE

•Margin Improvement

•Cash generation

•Reduce NWC

•Op Excellence

•Customer Responsiveness

•Quality & reliability

•Alignment, delegation, shared

goals and objectives

47


47

TEL HSE Statistics – YTD 2013

Target for TIIR 0.34

Target for TLTR 0.17

0.51

0

0.5

1

1.5

2

2.5

Jan

-12

Feb

-12

Ma

r-1

2

Ap

r-1

2

Ma

y-1

2

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

Jan

-13

Feb

-13

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Jun

-13

TIIR Rolling 12 TIIR Goal

05

101520253035404550

Jan

-12

Feb

-…

Ma

r…

Ap

r-…

Ma

y…

Jun

-…

Jul-

12

Au

g-…

Sep

-…

Oct

-…

No

v-…

De

c-…

Jan

-13

Feb

-…

Ma

r…

Ap

r-…

Ma

y…

Jun

-…

Severity Index YTD

0.55 0.55 0.54 0.54 0.54 0.550.53

0.00 0.00 0.00 0.00 0.00 0.00

0.75

0.00

0.20

0.40

0.60

0.80

1.00

2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Motherwell Safety Road Map Status 20130

0.5

1

1.5

2

2.5

Jan

-12

Feb

-12

Ma

r-1

2

Ap

r-1

2

Ma

y-1

2

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

Jan

-13

Feb

-13

Ma

r-1

3

Ap

r-1

3

Ma

y-1

3

Jun

-13

TLTR Rolling 12 TLTR Goal

Score dropped due to

review of LOTO RM

following corporate

mandate

LSOP, Hotspot Boards, Safety Stand downs,

Corporate Audits compliance, Proactive Site HSE

Meeting, Fire Alarm System, WAH improvements,

LOTO improvements.

48

COMPANY CONFIDENTIALSafety Performance - historic

2012 Projected TLTR Rate if we do not repeat 2011 Performance

Start of BBT in Sept

2011, introduction of

LSOP and HotSpot

Boards, Safety Stand

downs

0

1

2

3

4

5

6

TLTR Rolling 12 TLTR Goal

0

1

2

3

4

5

6

7

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

TIIR Rolling 12 TIIR Goal

2012 Projected TIIR Rate if we do not repeat 2011 Performance

49

COMPANY CONFIDENTIAL5S

Overview

• Manufacturing working on 5s for the past 3

yrs, but office areas were not part of this

improvement, this started in 2012

• All TMs re-trained during

• Focus on one “S” per month starting in

January 2013

• Base line audits completed of each area

• Great improvements in all areas, but much

still to do.

• Information Lifecycle Management helped

boost a change that was needed across the

site – 25 tonnes of paperwork from as far back

as 1960 were dumped/recycled, or stored

properly.

50


-25.00%

-20.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

-50

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012

Total Net Sales

Income from Ops

Op. Margin %

The recession impact on TEL performance..

• 2010 2H we started to see the signs of recovery

• Back to profitability in 2011

• 2012 good performance, but slow down started in Q3

• 2013 H1 challenging….some signs of pick up

51


51

TEL: Cash Flow

($ millions)

Operating Cash Flow 2011 A 2012 A

EBIT (including corporate charges) 2.7 14.8

D&A 1.0 0.8

EBITDA 3.7 15.6

Capital Expenditure -1.0 -1.3

Change in Working Capital -19.7 -2.6

Change in Customer Advances 0.0 0.0

Operating Cash Flow -17.0 11.7

52

COMPANY CONFIDENTIALCAPEX Investment – Machine Shop

•

Machine

Total

Investment

Annualised

Cost red’n Cost Reductions based on?

Simple

Payback IRR

DBC130

(MC60)$1,900,000

$2,600,000

Outsourcing cost of $2.9M plus Reduced

Maintenance of £240K. Off set by

Additional Tooling and consumable costs of

$670K Annualised

1.9Yrs 45.10%HM1000

(FMT)$1,000,000

VTS1620

(VTC)$1,500,00

$4.4M

Considerations

• Age of replaced machines – Reliability / Uptime / Parts Availability

• Cutting time improvement of minimum 25%

• Multi machine / multi process manning

Project is on schedule and currently projecting to be $70k under budget

Doosan DBC130 HZB (MC60) Doosan HM1000 MC (FMT300) Doosan VTS1620M VTC (G&L VTC)

53

COMPANY CONFIDENTIALCustomer Responsiveness

HOW

• Delivery

Credibility

• Initial Quality

• Purchase

Experience

BUSINESS SYSTEM

OBJECTIVE10% Higher Net Promoter Score than any Competitor

EQUIPMENT THAT

GOES TO WORK

EQUIPMENT THAT

STAYS AT WORK

WORLD CLASS PARTS &

SERVICE SUPPORT

METRICS • Customer

Uptime

• Speed in

Resolving

Customer

Issues

• Parts Order

Fill Rate

• Service

Feedback

ACTIONS • Customer Satisfaction Measurement (NPS)

• Action Planning and Improvement

• Clear Metrics to Drive Improvement

54

COMPANY CONFIDENTIALCustomer Responsiveness…..very important

…and many, many more things....

� Fast response to a call

or email

�On-Time Delivery

�Getting the order right

� Simple billing and invoicing

� Easy-to-do-business-with

�Parts support �Problem solver

� Fair pricing

�Not bureaucratic

� 24/7 mentality

�Understands

me

� Stands behind the

quality

�Not overselling

� Transparency

� Fair dealings

with channel

partners

�Admitting

mistakes

and failures…

55

COMPANY CONFIDENTIALQuality Management System:

Where we were

.

0

1

2

3

4

5

Document & Data Control

Policy & Objectives

Management Review

Human Resource

Design & Development

NPI

Sales Order Management

Purchasing

Supplier Management

Materials Control

Production

Calibration & Maintenance

Internal Audit

Control of NCM

Customer Satisfaction

Corrective & Preventive

ActionScore Guide

1 No process exists

2

There is only a verbal

system established.

3

A documented process

exists however it is only

partially implemented.

4


exists and is being

efficiently followed.

5


exists, is being efficiently

followed and performance

being measured.

56

COMPANY CONFIDENTIALQuality Management System:

Where we are now

.

0

1

2

3

4

5

Document & Data Control

Policy & Objectives

Management Review

Human Resource

Design &

Development

NPI

Sales

Order…

Purchasing

Supplier Management

Materials Control

Production

Calibration &

Maintenance

Internal Audit

Control of NCM

Customer Satisfaction

Corrective & Preventive

Action

QMS Status Profile• Changed Quality leadership

• Added resources at appropriate

level

• QMS development became a

Senior Team focus

• New system tools procured to

aid us

• Internal audit process vastly

improved

• Procedure re-write to a flow

format a big success, and will

continue in 2013

• Key objective – Take a more

pro-active approach to

preventing issues in key areas

by developing a risk

management system

57

COMPANY CONFIDENTIALCustomer Support

Team of field and office based

engineers providing fast, efficient and

accurate support at all levels

Technical Product Support

Warranty Claims

Field Support if and when needed

24/7 Online Customer Support Portal

World class training centre

Dedicated Training Team offering a

wide range of product sales, operator

and service training

Excellent classroom and workshop

facilities catering for both our

Customers and Dealers

58

COMPANY CONFIDENTIALOperations 2013 Summary

Full technical support for RMT

Field support for Russian units

Manuli hose project

HSE Drive – Stand downs / Local

ownership

Support for Fuchs

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2009

2010

2011

2012

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

0

10

20

30

40

50

60

70

80

90

100

2009

2010

2011

2012

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Defects per unit Build Schedule Compliance

75

80

85

90

95

100

2009

2010

2011

2012

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

On time delivery

Line rebalancing

Visual factory

Machine shop project

Local cell ownership

Re-layout of assembly

Internal kanban

Tooling improvements

Material deliver system

Continuous Improvement Other activity

Induction hardener

Paint delivery system

Improved cutting

technology

Robotic welding

Facilities Management

Software

Future projects

59

COMPANY CONFIDENTIALYTD Attendance Rates

Commentary• No concerns on absence levels

• Typically sickness absence is significantly better than UK industry standard

which is 6% approximately

• Our absence policy applies strict triggers which can result in a TM receiving

formal discipline and impacting bonus payment

60

COMPANY CONFIDENTIALTurnover %

2012 Turnover 2013 Turnover

• Typically very low turnover – normally below 3%

• Only becomes an issue if specific key skills are affected such as happened in

Engineering over a period of months in 2011 when an Oil & Gas company set up

locally and poached TM’s.

• We addressed by carrying out salary benchmarking exercise, conducted ‘stay’

interviews and supported development opportunities.

61


THANK YOU

ANY QUESTIONS

Terex Equipment Ltd “Back From The Edge” · Terex Equipment Ltd “Back From The Edge” ......

Documents

Transcript of Terex Equipment Ltd “Back From The Edge” · Terex Equipment Ltd “Back From The Edge” ......