ÅRsRappoRt 2012/13

Markante forbedringer ved flytning af
produktion til Kina og en række nye
d k
l
kk
organisatoriske ændringer med klare
ansvarsområder
åd
Bjørn Strømboe Petersen, Senior Vice President, Global Operations,
GN Resound A/S
GN Resound A/S
Corporate Structure
GN Store Nord
• Listed company
Listed company
• Supervisory Board
• Executive mgmt.: 2 CEOs and 1 CFO
2 CEOs and 1 CFO
GN ReSound
Hearing instruments and audiologic diagnostics equipment
GN Netcom
Two businesses run as separate entities
Contact center, office & UC headsets and mobile headsets
2
About GN ReSound A/S
- The world’s fourth biggest hearing instrument manufacturer
- Revenue was DKK 3,896 million in 2012. - Global market share approx. 16% in terms of units sold in 2012
- Markets products under the ReSound, Beltone and Interton brands
- Total workforce in GN ReSound and GN Otometrics was approximately 3,825 employees at the end of 2012
In‐the‐ear hearing instruments
Behind‐the‐ear hearing instruments
3
Global management
CEO & President
Lars Viksmoen
North America
Todd Murray
Global Marketing
Gian Carlo Sciuchetti
CFO Finance/
IT
Anders Boyer
APAC
John Goltermann
Lassen
CIO
Niels Keller‐
Larsen
Europe
Carsten Buhl
Business Program Management
(Acting)
Global HR
Pia Møller Appel
R&D /QA
Peter Ulrik Scheel
Global Operations
Bjørn S. Petersen
GN Otometrics
Søren Holst
Bo Ekelund
4
GN ReSound is closing the EBITA margin gap vs. competition
EBITA (%) margin development
30
GNR
WDH
Sonova
25
20
15
10
5
0
2002
2003
2004
2005
2006
2007
2008
Share price development
2009
2010
2011
2012/
2013
Guidance Target
• The EBITA margin has been multiplied by 4 in 5 years
• The price of a GN ReSound share has increased by more than 1100% in 5 years
• 12 consecutive quarters with positive organic growth and above market h d b
k
growth
5
Facts about GN ReSound Global Operations
Item
Number of operations sites
Number of operations
Number of employees
Number of SKU’s
• Products
• Parts & component
Value
6
1,748
8.200
14.283
Number of BTE units per year –
p y
ggross sales
1.708.056
Number of ITE units per year – gross sales
180.045 Number of order lines per year
5.785.000
Number of shipments per year
1.510.000
Gross inventory value (mill. DKK)
398
Gross inventory coverage in months
6,0
6
Operations levers to support the 20% EBITA margin
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Global freight tender
Inventory reduction
Inventory reduction
Warehouse optimization
Strategic sourcing
SKU reduction
d i
New packaging
Organize around 5 processes
Supply chain optimization
Design to Value
Off shoring of production from the US to China
Off shoring of production from the US to China
Consolidation of factories in the US
(Back‐up factory in China)
7
Organize around 5 processes
Glob
bal processes
Ph i l titi
Physical entities
A
P
A
C
Global sourcing
D
K
E
S
N
A
U
K
Global planning
5 global processes. Process owner decides across manufacturing and
decides across manufacturing and distribution sites.
Global manufacturing
Global distribution
Global returns
Global Operations
Bjoern S. Petersen
Finance
Christian Deichmann
PMO
Linda Lindberg
HR
Carsten W. Hollitsch
Master Data
Soeren Lillemose
Management assistant
Helle Thor p
Helle Thorup
Global Supply Chain
Thomas Lundstroem
Global Manufacturing
Ken Fay
DK Operations
Morten Andersen
Global Sourcing & Indirect
Procurement - Peters Vuust
Global Tech Ops.
Johnny Hansen
CN Operations
Ken Fay
Global Planning & NPI
Thomas Lundstroem Process & materials
Russ Schreiner
ES Operations
Jose Moreno
Global Distribution
Kim Rønn
Product Vince Maye
NA Operations
Brian Tsuchiya
Global Returns
Ken Carl Nielsen
Production optimization
Mel Dastur
UK Operations
Salvatore Oppido
Global process owners
Physical entities. Manufacturing & distribution
Supply chain optimization
2
3
Same day shipping fro
om consolidaated inventory loccations
Same day reepair using SWAP co
oncept
Global processes
Continuous improvement
4
Addition
nal initiatives
1
5‐day turnarround on cusstom hearing aids manufcaturing in h
China
C
Supply chain as a competitive advantage
 S&OP
 KPI driven
 Performance P f
management
 Transparency
 Governance
Performance management
9
Design‐to‐Value. An integrated approach for improving products and margins by understanding customer value and cost drivers
Skyfall idea
capture
156 potential
projects
DfV
Tear down workshop
findings
Exploration
of
Potential
Projects
Commodity
teams
Projects to execute
selected
‐
Priority,
contribution,
schedule
known
Results
having
impact
Projects
planned
and ongoing
Ti li
Timeline
10
Off shoring of production from the US to China
 Scope: Off shore 50% of production of custom products from US to China.
 Project started April 2012
 Capacity in China increased by factor 3.  Governance:
Go e a ce
– Weekly meeting across China, DK and US
– Weekly tracking of KPIs
Weekly tracking of KPIs
– Training and knowledge sharing across US and China
 Project completed July 21
l d l
 Post completion
– Weekly monitoring of TAT and Product Quality
E‐sculpting and Shell Manufacturing of custom products.
Custom Products Assembly in Xiamen
11
Consolidation of factories in the US
 Scope: Close factory in Chicago and move everything to factory in Mi
Minneapolis.
li
 Pre‐requisite was the off shoring of production
 Project initiated Dec 2012
 Detailed cookbook
 Governance:
– Program management
– Bi‐weekly steerco’s including commercial management
commercial management.
– Voice of the customer
 Project completed August 1
Consolidated manufacturing of custom products
Consolidated manufacturing of custom products.
12
Back‐up factory in China
Purpose:
Mitigate the risk of main factory being
Mitigate the risk of main factory being incapacitated.
Approach:
• Establish backup site within same area as main factory. • Backup equipment purchased and Backup equipment purchased and
installed.
• The factory is currently used for refurbishment of returns.
• In the event of main factory being incapacitated, employees will be redirected to backup site.
R f bi h
Refurbishment in new factory.
ti
f t
Prepared warehouse space
13
Going forward
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Continuous improvements
C
ti
i
t
Flexibility & agility
5%
14