World class manufacturing

Luc Graux

© SKF Group

World class manufacturing programs

2 November, 2015 Slide 23

SKF Production system > How we work

Technology step-up > How our machines

work

Integrated cost reduction (ICR) > Input cost

Manufacturing footprint > Where and what

Safety – Quality – Delivery – Cost – Working climate – Environment

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Technology step up – where we want to be

Our tools to get there:

• Standardisation

• Maintenance excellence

• Flexibility

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Standardization

Factory model standardization

Machine standardization

Process Centers of Excellence • Smart machine refurbishing • Innovation faster into factories • Standardization across SKF factories CMD 2014

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Learning center: a factory dedicated area for hands-on training.

Maintenance excellence

Maintenance excellence: a program to reduce

unplanned stops and improve

machine uptime

1st boot camp

April 2015

Operational

Learning centers

started in fast

growing markets

2013: 8

2014 : 14

2015: 21

9 new learning centers added

Manufacturing Academy launched

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Flexibility

CMD 2014

Volume

Co

st

Flexi model

Right technology

set-up for each type

of market demand.

New technology

step-up for Fexi

model – moving to

Industry 4.0

High volume model

Super flexi model

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Manufacturing footprint

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2 factories in Dalian, China

• Year of production: 2006

• Size of building: 80 459 m²

• Product Lines SRB, LSB

• Size range 180 to 4000 mm

• Employees: 450

• Main market: Renewable, Metal, Railway, Mining, Drives,

Cement

• Number of channels: 10

• Year of production: 2012

• Size of building: 47 000 m²

• Product lines: DGBB, ACBB, TRB, CRB

• Size range 40 to 429 mm

• Employees: 250

• Main applications: Industrial electrical, Industrial

transmission, material handling, fluid power...

• Number of Channels: 5

2 November, 2015 Slide 29

Dalian Large

Size Bearings

Dalian Medium

Size Bearings

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Dalian new Channels

2 November 2015 Slide 30

• 2 new channels for Spherical Roller Bearings

• 1 new channel for Deep Groove Ball Bearings

• 1 new channel for Cylindrical Roller Bearings

• Production release and ramp-up on-going

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Manufacturing footprint

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World Class Manufacturing Goteborg factory

Installation on-going

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Technology step up – SRB Gothenburg

2 November, 2015 Slide 33

• Low cost, high output, flexible

• Zero reset machines

• Smart grinding devices

• Automatized assembly

• Automated storage of components

• Automated Guided Vehicles

• RFID tagging

• Bearings individually ID marked

• Low energy machines, flexible LED lightning

• SKF Condition Monitoring and mobile connectivity

• Operators real time information enabled

© SKF Group 2 November, 2015 Slide 34

Entering the 4th Industrial revolution

• Shorter time to market

• Increase flexibility

• Boost efficiency

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Summary

New and simplified organization

Clear customer focus

Leading Distributor partner in the industry

World class manufacturing

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Q&A