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Atlas Schindler

Atlas Schindler. Emily Phair - Serge Poltinnikov - Mihai Bledea - Clara Macabuhay. Working wit. The Team. Working with. Working for. Executive Summary. Company Description: Schindler is one of the leading global manufacturers of elevators, escalators and moving walks.

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Atlas Schindler

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  1. Atlas Schindler Emily Phair - Serge Poltinnikov - MihaiBledea - Clara Macabuhay

  2. Working wit The Team Working with Working for

  3. Executive Summary Company Description: Schindler is one of the leading global manufacturers of elevators, escalators and moving walks. Problem Statement: A bottleneck in theEngineering Change Order process is resulting in increase in lead time for approval of designs. Recommendations: XXXXXXXXXXXXXXXXXXXX

  4. Company Company Profile Schindler Transports 900 Million People Every Day • Founded: Switzerland, 1874 • Employees: 44,000 worldwide • Products: • Passenger elevators for high, mid and low-rise residential and office buildings • Freight elevators • Escalators for all applications – malls, airports, theaters, etc. • Moving walks • Product modernization and innovation • Complete maintenance and service – 24/7

  5. 2009 Global Sales (all products) Brazil accounts for 15% of total Latin American Market *60% of total revenue comes from sales of service oriented products

  6. Atlas Schindler - Brazil In 1999 Schindler purchased Atlas, a Brazilian company Atlas Schindler now controls 40% of the global market share and 50% of Brazil’s total market share Sao Paulo construction market expected to gro wXXXX Lknlknlsdffnk lknsdlknsdlfnk

  7. Brazil Operations 150 Service Points Two Plants *67% from maintenance and modernization *33% from new products and installation

  8. Demand in Brazil is growing in ALL segments3-5 year estimated growth rate is 10% for elevators, 5% for other products Residential segment growing fastest due to low interest rates Expected GDP growth rate of 5% - a paralleled growth

  9. SWOT Analysis Strengths Weaknesses Consolidated leadership Diversified portfolio of products Name brand recognition (Atlas) 70% certified suppliers Top quality global producer Decentralized Management team Disruptions in communication flow Lack of adequate human resources Opportunity Threats Growth in relation to 2014/2016 games Demand for new construction US transition to electric elevators Strong currency fluctuations Change in regulation of interest rates Change in regulatory codes

  10. to this ECO in advance. The ECO Process Engineering Change Order Swiss Engineering Team R&D Planning Remaining 6 ECO Steps

  11. Approved!

  12. Timeline ECO Orders Approved Elevator Installation Order Received 135 days 84 days 56 days ECO Process Orders Submitted Manufacturing

  13. ECO process Challenges 1. Increase in incoming ECOs needing approval2. Seven separate approvals needed for each - all running simultaneously. 3. Documents from Switzerland don't identify modifications and needtime-intensive interpretation and validation. 4. Lead time for tooling is 90 days. - not in all causes, but we canconsider this in the great majority - OK5. Product charecteristics and mechanical features are different for eachreceived KA (ECO). - OK6. Revision from original version to revised version stops the flowof approval process. - OK7. Problem finding qualified SAP experts & drawing interpreters - It is notcorrect. We have qualified SAP experts and drawing interprets, but they areinvolved in others process.8. Inconsistent deadlines instead of a clearly defined timeframe. - OK

  14. Make Financial Information

  15. Short-Term Automate follow up email via SAP to Lotus Notes, follow-up notifications Automate identification of the type of workflow in each stages of the approval process Configuration in SAP to include delivery date field Creation of queries in SAP to minimize manual work for Planning

  16. Mid-Term Weekly production meetings by all the process approvers for ECO status updates and prioritizing. Create a checklist for each of all the steps, bypass some of the approvers Create Business Process Procedure (BPP) - set instructions in writing, (for back-up) in case other approvers are not available Reject ECO's with incomplete information Follow written procedure even if it's a quick reference guide of creating an ECO

  17. Long-Term Hire additional staff due to the growing business BW Reporting tool Create a team of ECO Approvers

  18. Recommendation 1. lksdnflksndfvlsnkd 2. lksdnflksndfvlsnkd 3. lksdnflksndfvlsnkd

  19. Time Horizon Short Term: Mid Term: Long Term:

  20. Business Model Short Term: Mid Term: Long Term:

  21. Questions How do the differences in the Brazilian and Swiss cultures affect Atlas Schindler’s productivity?

  22. Over 100% projected increase in orders in 2010 33% Increase in cycle time per ECO approval Growth trend to continue for next 5 years

  23. Executive Summary -problem statement/recommendations Company background -introduction of AS team -product lines -locartions/distreibution centers, service points -market share and forecasted market share SWOT Problem Statement- -Company goal -ECO target number -Quantity of ECOs in process/pending -Define ECO issue Detailed info about ECO process -Define the 7 stages of approval -2 are going well, 5 could improve -Simultaneous view of approval -Deadlines -New products vs. modifications -detail of cycle time -reasons/assumptions of the changes in the last 2 years -causes of bottleneck PnL – Forecast -Incoming orders Alternatives -Form an interdepartmental team -Hire additional staff -Weekly status update meetings -Change the 7 stages -Additional options? Recommendation -short, mid, long-term Q&A -Queue up the questions for the audience Who did what? Who are our resources?

  24. Cost of the expat might be the salary times the 1.5 (for relocating, plus relo costs (housing etc.) • Investment cost • Income statement • PandL – example save 3 months on cycle time, what $$ will you save – more time then for other products. e: if you c • Increase productivity • Average elevator sells for XX amount, sell x per year • What is the demand? Number of buildings coming up? • In Sao Paulo alone and then make assumptions for • Sao Paulo 50% of market for buildings in Brazil

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