Tendering process presentation

1 Sandvik Mining and Construction

TENDERING PROCESS

CONSTRUCTION Equipment

Projects & Systems

Crushing & screening plants

Bruno Bordoni, November 16th 2009


Safety Safety FFirst

Safety first everywhere our equipment is in use and in our own organization

Our aim is to achieve zero work related injuries and illness

SAFETY MANAGEMENT SYSTEMS

WORKPLACE RISK ASSESSMENT

OHSAS 18001

EHS FULLY INTEGRATED IN PRODUCT DEVELOPMENT


Projects & Systems - Tendering processA tendering process, what for ?

Build a strong relationship between Sales Units

and Projects & Systems team = create confidence

and mutual trust

Reach a 25% hit rate (number of orders vs offers)

Focus on customers’ needs and expectations


Projects & Systems - Tendering processContents

Reference documents

Wording

CNS Equipment Projects & Systems – Business

Unit

Definition of Project

Global project processing

Tendering process


Projects & Systems - Tendering processReference documents

Who’s who : presentation of Projects & Systems team

EPC Centres AppSS resources allocation : allocation of

resources dedicated to support the Sales Units

Evaluation form : written support for project evaluation

Request for proposal : written support with technical

informations needed to provide an accurate proposal

Tendering process : flow chart with the different steps

of the tendering process


Projects & Systems - Tendering processWording

CNS = Construction P & S = Projects & Systems EPC = Engineering, Procurement and

Construction

(# turnkey) AppSS = Application and Sales Support GPSM = Global Projects & Systems Manager

(namely Bruno Bordoni) RPSM = Regional Projects & Systems Manager SU = Sales Unit (# frontline)


Projects & Systems - Tendering processCNS Equipment P&S – Business Unit

Purpose of P&S

Support the Sales Units

to win and execute turnkey crushing and screening plantsSell equipments through the plants

Develop aftermarket business : spare / wear parts and services


Projects & Systems - Tendering process guideCNS Equipment P&S – Business Unit

Global organisation chart

VP CNSEquipment

Duncan McGregor

GPLMMobile Crushing

& Screening

John Nethery

GPLM CNS Crushers

Mikael Delbrant

GPLMScreens

Petri Mehto

Business Control

Patrik Gotthardt

GPLM Breakers

Ola Ulmala

Global Tunneling

Pekka Nieminen

GPLM Surface Drills

Pekka Kesseli

CNS Projects &Systems

Bruno Bordoni


Projects & Systems - Tendering process guideCNS Equipment P&S – Business Unit

P&S Organisation chartCNS

Projects & Systems

Bruno Bordoni

EPC Centre SvedalaEPC Centre

Clichy EPC Centre X

EPC Centres provide : process and sales support, project engineering,project management, global sourcing and project execution (manufacturing,erection, start up and commissioning)


Projects & Systems - Tendering processProject definition

1. At least 2 equipments linked together crusher + screen

screen + conveyor crusher + screen + conveyor primary stationcomplete plant

+2. At least one project activity plant processing, project engineering (basic or detailed design),

purchase (third party componants or equipements, steel

structures, electrical package,….), erection works, project

management+

3. Total amount of the project is above 500.000 €


Projects & Systems - Tendering process Global project process

Leadership : SALES UNIT Leadership : EPC Centre

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Sales Unit

RPSM

GPSM

Sales Unit

Process Main activities

Make market survey and analysis Collect and evaluate opportunities Forward opportunities to RPSM Provide required technical information for quoting

“Filter function” for customer requests/ opportunities and collecting further technical/ commercial key-information

Select and forward opportunities to GPSM Make Go/ No-Go decision

Agree Go/ No-Go decision

Establish proposal Support SU during tendering process

Customer follow up : provide regular information about project status to EPC Centre + RPSM + GPSM

Customer

EPC Centre

Projects & Systems - Tendering processOverall workflow


Prioritizing/Evaluating

Go/No-GoDecisionGPSM

Team

RPSM

CollectingOpportunities

RegionalSales

FilterFunction

Offering

Declining

Customers

Projects & Systems - Tendering processScreening process

Evaluation form

to be sent to RPSM + copy GPSM

Evaluation form


Projects & Systems - Tendering processSelection criteria

Quality of information regarding project and customers

Quantity of core Sandvik equipments

Risk analysis : well-known process / technology, well-known bulk material, customer and market knowledge, delivery time, terms & conditions

Prioritization : high opportunity project, quarry and civil engineering, size of project, stationary plants, mobile plants

Available resources : within AppSS team

Supply and logistics : local supply and / or works, transportation issues, time table for long lead items


Projects & Systems - Tendering processTender preparation is a team work

Team members : Salespeople, RPSM, GPSM, AppSS Manager, AppSS Engineers

Quality of technical inputs is mandatory to establish an accurate technical solution : send Request for proposal to AppSS Manager

Accuracy of local economical information is mandatory to establish a accurate financial offer (works sub-contracted to local suppliers)

Tendering process is not a short lead process

Tendering process is an interactive process with customer

Tendering process

AppSS

Request for proposal

Documents

Tendering process presentation