Part 2 – Investing In Britain & Ireland’s Industrial FutureMike HoughtonManaging DirectorSiemens Process Industries & Drives

Today’s presentation

About us….bringing the brand to life

Continuous improvement…..the role of leadership

The need for change…..increasing complexity in Manufacturing/ processing

Case study….”in practice”

Global presence - Close to our customers all over the world

Global Numbers (FY15)

Orders = €82,340bn

Revenue = €75,636bn

Employees = 348,000

Siemens in the UK

28

13Established in

Revenue

Figures FY15

£5bn

Manufacturing Facilities

Employees

1843

55,000

For illustration purposes only

Supply chain in UK

Apprentices Graduates100

14,000

500

Major Siemens sites

Siemens UK divisions

MarketAmericas Global Healthcare

MiddleEast, CIS1)

Asia,Australia

Europe,Africa

Separately ManagedGo-

to-

mar

ket

Management is about coping with complexity

Leadership, by contrast, is about coping with change.

“Leaders don’t make plans; they don’t solve problems; they don’t even organise

people. What leaders really do is prepare

organisations for change and help them cope as they struggle through it”

John P. Kotter

Pendulum...

Continuous improvement

We want to be as well known for the added value we generate for our customers through our innovation and technology

• Shorterinnovation cycles

• More complex products• Larger

data volumes

• Energy and resource efficiency as key competitive factors

• Individualized mass production

• Volatile markets• High

productivity

Strengthening our customers’ competitiveness

Increasing efficiencyEnhancing flexibilityReducing the time to market

Challenges put simply

Costs increasing

Sales competition

TodayGap, if this gets too big....

time

Sceptics....

Business Excellence A journey of continuous improvement

Siemens Motion Control in Congleton are the highest scoring Siemens company worldwide for EFQM achievement!At this year’s National UK BQF Awards Siemens were described as “Serial winners...”

The

mer

ging

of t

he re

al &

dig

ital w

orld

s

Man

ufac

turin

g is

chan

ging

Increase efficiency1 Shorter

time-to-market2 Enhance flexibility3

• Shorter innovation cycles

• More complex products

• Larger data volumes

• Individualized mass production

• Greater market volatility

• High productivity

Increasingcompetitiveness

• Energy and resource efficiency are decisive factors of competitiveness

LEAN - The Three Pillars

The Building Blocks For Success

Education, Sponsorship & Community By increasing our focus on the customer experience

By measuring our performance and celebrating our success

Building Competence - Leadership

LeadershipTraining

Training and Engaging our Good2Great Community

…100% of our management team received ‘Lean Leaders’

training!

Inspire!…The Lean Leaders were tasked with engaging their teams with the Lean philosophy and inspiring them to embrace culture change.

Commit!…Every member of the Leadership team made a pledge to implement and enable Lean in their area.

Execute - Leadership

Leadership Gemba

Managing our Strategic Projects

using Gemba

…Since the introduction of

Leadership Gemba our year

end Strategic Project delivery has risen from 30% to 80%!

Strategic Projects…We have empowered our employees to lead 20 Strategic, Focus and Enabler projects that are reviewed on a monthly basis via Leadership Gemba meetings.

SupportManagers provide their teams with dedicated time and resourceto enable them teams to conduct improvement activity.

Ownership… Employees are trusted to make decisions about their own processes and own their frustrations.

Sustain - Empowerment

Reward & Recognition

Profiling our Champions and rewarding their contributions

…There have already been 26

Champions Awards for

contribution to Lean in this

financial year.

LEAN KAIZEN Event - Siemens & Customer UKCustomer UK and Siemens Large Drives jointly participated in a Kaizen event to reduce costs,

e.g. contract effectiveness, payment performance and customer satisfaction of an already highly successful collaboration

Over the three days, the group reviewed over 170 pre-determined issues then developed solutions. The improvements included the bid, contract conditions, design liaison, order

issue, documentation, packaging, shipping, pre-commissioning arrangements, commissioning, payment and warranty

Reduction of 70 days

@UKTIevents#IFB2016

Connecting The UK’s Oil And Gas Expertise To The World