PLM Transformation in Developing Markets

PLM Transformation in Developing MarketsBerlin, February 27th 2017

Kirsten Gottschling, Dr. Adrian Reisch

@PITVtweets #PIBerlin

1 About Nordex and Acciona Windpower

2 Challenges

3 PLM Transformation

4 Lessons Learned

Agenda

2/28/2017PLM Transformation in Developing Markets 2

Nordex and Acciona Windpower cover the entire windpark value chain with core business solutions & products

About Nordex and Acciona Windpower


Project Development, Marketing, Financing

Wind FarmSystem Planning

Production and Tech-nical Implementation

Wind FarmOperations

Services and Maintenance

Selection of location

Ownership

Optimal siting

Wind measurements

Soil survey

Noise / shade emission

Economic viability

Grid connection

Special purpose registration

Environmental permitting

Building permitting

CIVIL WORKS

ELECTRICAL INFRASTRUCTURE

INSTALLATION & COMMISSIONING SERVICE

TURBINE DELIVERY

PROJECT DEVELOPMENT

Expected 2016 key performance indicators (as of Q3/2016)

Order intake (EUR bn) 3.4 EBITDA margin (in %) 8.3

Sales (EUR bn) 3.4 Employees 5.200

The comprehensive product portfolio covers very different markets to globally serve individual customer needs

About Nordex and Acciona Windpower


Individual customer needs and a highly differentiated product portfolio increase the complexity for a project-driven company

Focus: Sophisticated WTG solutions

Typical project:Noise restricted sites

Dealing with RESTRICTIONS

& LAND CONSTRAINTS

Focus: Low capexWTG solutions

Typical project:100 MW in

emerging markets

Projects with NO LAND

CONSTRAINTS

TOGETHER Winning in very different markets

IEC Class I IEC Class II IEC Class III

3MW+

N100/3300 N117/3000

AW100/3000 AW125/3000 N131/3000

AW116/3000 N131/3300

AW132/3000

2MW N90/2500 N100/2500 N117/2400

1MW AW1500 series ( AW70, AW77, and AW82)

Solutions to serve customer need around the globe

LCOE=CAPEX+OPEXLife

AEPLife


Low Cost of Energy (COE) are key to adress price pressure and ensure competitiveness in the wind energy market

Challenges

Levelized Cost of Energy (LCOE)

Compensate the price pressure

COE Target

Levers

OPEX

Cost Down

Yield

LCOEnow

CAPEX

Value up LCOEfuture

Cost Down

EBITDAnow

Price EBITDAfuture

COEEBITDAdrivers

Nordex confirms 18% COE reduction through 2018 (vs 2015)

Ongoing price pressure in the market renewables energy market

Global trends and challenges in the wind energy market drive the need for efficient product development and lifecycle mgt.

Challenges


Enable the project-driven

company

Increase CTO, decrease ETO

Reduce time-to-market

PLM@Nordex as enabler for future revenue growth and efficiency

Time

Profit

PLM@Nordex

Individual customer

needs

Low cost of energy

Digitalization

PLM Strategy

The enormous growth over the past years caused challenges in the engineering organization and over the entire Product Lifecycle

Challenges


Replace customized tools and processes without losing productivity

Harmonize various legacy systems into one global solution

Ensure an understanding, acceptance and responsibility for end-to-end processes with a very limited capacity of inhouse resources

Manage product complexity & align mechanical, electrical, software engineering

Ensure high business performance immediately

after project go live

Challenges are managed in an integrated approach to guarantee the success of PLM@Nordex

PLM measures are divided into work packages for stepwise transformation without losing productivity

PLM Transformation – Strategic Direction Setting


Long-termMid-termShort-term

PLM Strategy

Integrated BoM management

Master data harmonization

Classification

2016

PLM-ERP-Integration

Release management

Configuration

Document management

Master data management

CAD methodology

Integrated PLM IT architecture

Product structure

2017

Change management

Implementation of small work packages in several releases one after the other

Product configuration in early phases improves time-to-market and better risk evaluation of ETO modules

PLM Transformation – Processes & Organization


Sales Configuration Execution Service

Conception of end-to-end processes with involvement of all stakeholders

Tender

Pre-Configuration

Contract

CTO

ECN

Planning

Long-lead items

Service operations

Logistics & Commissioning

ECR

Production order CTO

Purchase order CTO

Production order ETO

Purchase order ETO

Sales

Project Mgt.

Engineering

Purchasing

Production

Service

The end-to-end process is reflected by functional building blocks across the PLM-ERP IT landscape

PLM Transformation – IT & enabling technologies


PLM

Product Structure

150% eBoM, technical

configuration

Product data & document

management

Mechanic, Electronic, Software

Bill of Material Management

eBoM, mBoM, sBoM

It is crucial to proof the concepts for smaller building blocks fast in the system landscape with an agile or rapide protoyping approach

Engineering Change

Management

PR, ECR, ECN

Requirements Management

Requirements, specifications

PLM – ERP Interface

Field mapping, document exchange, status transfer,…

ERP

Manufacturing, Production and Service management

Supply Chain and Vendor management Project management

Finance and Accounting processes Customer relationship management

Improved performance enabled by new processes and IT landscape hast to be established in the organization

PLM Transformation – Performance Management


In addition to the project communication, knowledge build-up and transfer has to be managed to fully benefit from the performance improvements

1

2

3

4

5

7

Denial

Learning

Knowledge Expertise

Pe

rce

ive

d In

div

idu

al C

om

pe

ten

cy

tInformation/

Communication

Shock

Rational

Perception

Acceptance

Training Hypercare &

Coaching

Operationalization/

Continous Improvement

Go Live

Improved end-to-end process performance

6

min

min

PLM is a cross-functional approach that requires collaborative ways of working across departments

PLM Transformation – Management of Change


Sales

Prod.Develop.

ElectricalEng.

SystemIntegration

Project Mgt.

Purchasing.

Production

Standards

MechanicsEng.

Service

Product Mgt.

Product Structure

SoftwareEng.

• Generic modules• Specific variants• Part

The product structure serves as main enabler to support the new way of cross-department work in product development & lifecycle management

The new way of working is based on the modular product structure

PLM Transformation – Management of Change


Create/ Adapt 3D

Model

Update tracking

sheet

Copy BoM from old

tracking sheet

To

day

Create Mat/ BoM

CREO ExcelExcel SAP ERP

Create/ Adapt 3D

Model

Create materials &

detail eBoMProduct structure

Fu

ture

Transfer Mat/ BoM

CREO PLM WindchillPLM Windchill SAP ERP

Focus

Focus Transform

Modular product structure-based development and lifecycle management processes are key levers for complexity and COE reduction

The PLM journey at Nordex and what we achieved so far

Lessons Learned


IT Landscape

and CREO 3D CAD

Team Data Management

in PTC Windchill PDMLink

PLM Scan:

Strategic Direction Setting

and PLM Business Case

PLM Conception:

End-to-end process

& IT concepts in

PLM and SAP ERP

PLM Release 1:

Product structure,

document and release

management

PLM Release 2:

PLM-ERP integration,

BoM and change

management

2017

2016

2015

2014

2013

2012

PLM Release 3:

Project configuration,

modular document and

windparc management

Factors for success

Lessons Learned


Replace customized tools and processes without losing productivity

Harmonize various legacy systems into one global solution

Ensure an understanding, acceptance and responsibility for end-to-end processes with a very limited capacity of inhouse resources

Manage product complexity & align mechanical, electrical, software engineering

Ensure high business performance immediately

after project go live

Challenges are managed in an integrated approach to guarantee the success of PLM@Nordex

Implement small pieces one after the other

Swift communication between high

performing teams

Agile project work: Proof concepts fast in the system

Structured and clear test cases for business acceptance

Intense communication for successful Management of Change

Transparent decision making process and governance

End-to-end process conception

Your contact

2/28/2017Title of presentation 16

Kirsten GottschlingVice President

Head of Standards and

Commercial Engineering

Nordex Energy GmbH

Hamburg

Dr. Adrian ReischSenior Manager

PLM Leader

Ernst & Young GmbH

Wirtschaftsprüfungs-

gesellschaft

Berlin

Thanks foryour attention

Togetheron the same course

Nordex SELangenhorner Chaussee 60022419 HamburgGermany

Tel: +49-40-30030-1000Fax: +49-40-30030-1101Email: [email protected]: www.nordex-online.com

Acciona WindpowerPolígono IndustrialBarásoain, parcela 231395 BarásoainNavarra, Spain

Tel: +34-948-720535Fax: +34-948-720531Email: [email protected]: www.acciona-windpower.com

Documents

PLM Transformation in Developing Markets