Atlas SchindlerAtlas Schindler

Emily Phair - Serge Poltinnikov - Mihai Bledea - Clara Macabuhay

Working wit

The TeamThe Team

Working with

Working for

Executive SummaryExecutive SummaryCompany 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

Company

Company ProfileCompany Profile

Founded: Switzerland, 1874Employees: 44,000 worldwideProducts:1.Passenger elevators for high, mid and low-rise residential and office buildings2.Freight elevators3.Escalators for all applications – malls, airports, theaters, etc.4.Moving walks5.Product modernization and innovation6.Complete maintenance and service – 24/7

Schindler Transports 900 Million People Every Day

2009 Global Sales (all products)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

Atlas Schindler - BrazilAtlas 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

Two Plants

150 Service Points

*67% from maintenance and modernization*33% from new products and installation

Brazil OperationsBrazil Operations

Demand in Brazil is growing in ALL segments

3-5 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

SWOT AnalysisSWOT AnalysisStrengthsStrengths WeaknessesWeaknesses

OpportunityOpportunity ThreatsThreats

Consolidated leadershipDiversified portfolio of productsName brand recognition (Atlas)70% certified suppliersTop quality global producer

Growth in relation to 2014/2016 gamesDemand for new constructionUS transition to electric elevators

Decentralized Management teamDisruptions in communication flowLack of adequate human resources

Strong currency fluctuationsChange in regulation of interest ratesChange in regulatory codes

to this ECO in advance.

The ECO ProcessThe ECO ProcessEEngineering ngineering CChange hange OOrderrder

R&D Swiss Engineering Team

Planning

Remaining 6 ECO Steps

Approved!

TimelineTimeline

ECO Process Orders

Submitted

ECO Orders Approved

ElevatorInstallation

Order Received

135 days 84 days 56 days

Manufacturing

1. Increase in incoming ECOs needing approval

2. 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

ECO process Challenges

Make

Financial InformationFinancial InformationIn million CHF 2009 2008 2007 2006 2005

Orders received 12 865 14 479 14 116 11 720 9 445

Operating revenue 12 691 14 027 13 835 11 106 8 870

Profit before taxes 904 878 486 711 572

Net profit 653 634 278 511 401

Atlas Schindler’s Share (Brazil) 131 129 57 142 114

Projected Loss (30 days) 10.9 10.7 4.7 11.8 9.5

Projected Profit (30 days) 10.9 10.7 4.7 11.8 9.5

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 fieldCreation of queries in SAP to minimize manual work for Planning

Short-TermShort-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 informationFollow written procedure even if it's a quick reference guide of creating an ECO

Mid-TermMid-Term

Hire additional staff due to the growing business

BW Reporting tool

Create a team of ECO Approvers

Long-TermLong-Term

RecommendationRecommendation

1. lksdnflksndfvlsnkd

2. lksdnflksndfvlsnkd

3. lksdnflksndfvlsnkd

Time HorizonTime Horizon

Short Term:Mid Term:Long Term:

Business ModelBusiness Model

Short Term:Mid Term:Long Term:

QuestionsQuestions

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

2009 Quarter Number Approved

Total days Average days/ ECO

1 22 1085 76

2 74 362 121

3 72 503 62

4 56 625 70

2009 224 2575 91

20101 Qtr.

50 428 135

Desirable - - 93

Over 100% projected increase in orders in 2010

33% Increase in cycle time per ECO approval

Growth trend to continue for next 5 years

Executive Summary -problem statement/recommendationsCompany background-introduction of AS team-product lines-locartions/distreibution centers, service points-market share and forecasted market share SWOTProblem Statement--Company goal-ECO target number-Quantity of ECOs in process/pending-Define ECO issueDetailed 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 bottleneckPnL – Forecast-Incoming ordersAlternatives-Form an interdepartmental team-Hire additional staff-Weekly status update meetings-Change the 7 stages-Additional options?Recommendation-short, mid, long-termQ&A-Queue up the questions for the audience

Who did what?Who are our resources?

• 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