Vestas Way to Market: Project Execution Model

Projekt:værktøjsdagen

Aarhus den 7 maj

Peter Færge-Broberg & Eskil Fjord Pedersen

Projekt:værktøjsdagen

2

Peter Færge-Broberg Specialist,

PMO

Manufacturing, Global Sourcing & QSE

Part in Vestas PEM creation

Eskil Fjord Pedersen IPMA B-Certified - Senior Project Manager

3MW Platform

Technology & Service Solutions

User of Vestas PEM

Project Execution Model

1. Introduction

2. Governing principles

3. Project Governance

4. Project Organization & Setup

5. Generic Project Roles

3

Vestas Today

4

From blacksmith to global wind leader

5

Vestas’ journey

1898:

Blacksmith H.S. Hansen arrives in

Lem

1945:

VEstjysk

STaalteknik A/S

becomes VESTAS

1979:

First turbine after

agricultural

vehicles, etc.

1987:

Vestas

Wind Systems

A/S

1991:

Turbine no.

1000

2013:

Anders Runevad,

CEO

2004:

Merger: NEG

Micon & Vestas

2012:

50 Gigawatt

milestone.

2014:

Profitable Growth for

Vestas & MHI Vestas

founded

2010:

Wind. It means

the world to us.

Vestas in brief

6

The only global wind energy company

We employ around

19,600 people worldwide

and have more than 30

years of experience with

wind energy

19,600+ We monitor around

28,000 turbines, or more

than 52,300 MW, day

and night and the data is

used for efficient service

planning and pre-

emptive maintenance

28,000+ We have more than

53,000 turbines or more

than 66 GW cumulative

installed capacity in 73

countries worldwide

spanning six continents

53,000+ Vestas revenue for

the full year 2014 was

EUR 6.9 billion

€ 6.9b

Vestas has a unique global reach in sales, installation and manufacturing

Global headquarters

Sales & Service

Production

Research

Vestas locations around the world

7

Installed*

19913MW Installed*

6179MW

Installed*

9313MW

The industry’s most proven technology

8

2 platforms ensure wide range of variants based on the same reliable turbine technology

2 MW PLATFORM 3 MW PLATFORM OTHER 3 MW TURBINES

YEAR OF

PROTOTYPE 2004 2009 2014 2014* 2013 2013 2013 2002 2012

PRODUCT-

CAPACITY

V90-1.8MW

V90-2.0MW

V100-1.8MW

V100-2.0MW

V110-2.0MW V105-3.3MW V112-3.3MW** V117-3.3MW V126-3.3MW V90-3.0MW V100-2.6MW

*As per December 31st 2014

** Including V112-3.0MW

What Vestas offers

9

Our business spans across both turbines and services

WIND

SOLUTIONS

SITE

SOLUTIONS

Expertise built from

30 years of wind

industry experience

Project Execution

Model

Project Execution Model - Introduction

11

Governing Principles

Project Organization Roles &

Responsibilities

Governance

Reporting & Escalation

Supporting Tools &

Systems

Terminology & Definitions

Project Execution Model

Vestas Way to Market Issue Gate 1

Presentation

Have Stage 2

Kick Off

Definition of

handover criterias

between Platform

Management and

Service Engineering

Align Milestone

Plan

Release Project

Management

Plan

Consolidate

planning and

scoping activities

Gate Count

Down G2

Lessons

Learned

Release Project

Management

Plan

Gate Count

Down G3

Lessons

Learned

Have Stage 4 Kick

Off

Update

Communication

Plan

Consolidate

Project Budget

Align Milestone

Plan

Release Project

Management

Plan

Consolidate

planning and

scoping

activities

Gate Count

Down G4

Lessons

Learned

Detail Project

Plan Stage 6

Request

generic

resource needs

Review and

baseline Plan

Release Project

Management

Plan

Gate Count

Down G5

Lessons

Learned

Request

generic

resource needs

Consolidate

Project Budget

Consolidate

planning and

scoping

activities

Gate Count

Down G6

Lessons

Learned

Manage Project

Scope Changes

Handover

between

Platform

Management

and Service

Engineering

Gate Count

Down G7

Project Closure

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Evaluate full

Project Risk

Profile (Pre G2)

Evaluate full

Project Risk

Profile

Evaluate and

escallate sub

project risks

Evaluate full

Project Risk

Profile

Evaluate and

escallate sub

project risks

Evaluate full

Project Risk

Profile

Not Started Not Started Not Started Not Started Not Started Not Started

Establish Cost

Tracking Setup

Cost Target Setting Cost Estimation Cost

Optimisation

Cost Report Cost Report Cost Report

Not Started Not Started Not Started Not Started Not Started Not Started Not Started

CIM case

Evaluation

Quality

Assurance Plan

PPAP Scope &

Plan

Prototype

Control Plan

Inspection Plan

for Prototypes

MSA Execution

& Collection of

Results

PPAP Validation

of Parts &

Documentation

Finalize PPAP

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

SBU Selling

Guidelines for

Early

Engagement

Draft Go-To-

Market Plan

Define

Technical

Market

Documentation

Draft Marketing and

Communications

Plan

Market

Documentation

Plan Locked

Early Selling

Documentation

Package

Complete

Performance

specification

Documentation

Package

Complete

Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Make early

booking

request in GTRS

for Product

Tests

Create Product

Verification

Procedure

(DVPR)

Make early

booking

request in GTRS

for Test of

System

Create

Component

Verification

Plan (DVPL)

Do early

booking

request for

Component

tests in GTRS

Create System

Verification

Procedures

(DVPR)

Reliability

report

Identify test

centres for

Component

test

Execute

Component tests

inside Vestas

Execute

Component

tests outside

Vestas

Write test

report (Product)

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Manufacturing

requirement

definition

Alignment of

Training

Expectations

Production

Planning on MS

Items

Materials and

Production

Master data for

prototype

Production

Basis for

Prototype

Production

Produce

component

prototype

Prepare for

production

training

0-series

production

layout and

process flow

Phase out of old

items

Production

Basis for Serial

Production

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Identify Second

source for

items

Design for

Sourcing

guideline

released (Generic

& project specific)

Should cost

analysis

conducted

Investment plan

and budget for tools

& equipment at

suppliers updated

Preferred

supplier list

Should cost

analysis

conducted

Not Started Not Started Not Started Not Started Not Started Not Started

Impact analysis

for maintenance

and uptower

repair

Update torque

setting diagram

Creation of

Service

Inspection

Instruction (SII)

and Service

Inspection

Form(SIF) ready

for prototype

Application on

material

master for

spare parts

Finalize service

tasklist based

on operations

Finalize

Lubrication

Chart

Create

recommended

spare part list

Prepare

training

equipment

Update process

and process

risk

assessment

(PFMEA)

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Impact analysis

for installation

Process design

for installation

Process risk

assessment for

installation

(PFMEA) ready

for prototype

installation

Installation

sequence

guide, baseline

document and

mechanical

completion

check list ready

for prototype

Training outline Balance of

Plant

Development of

training

material

Preparation for

development of

training

equipment

Training

equipment

production

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Transport

requirement

definition

Transport

business case

Prototype

transport

solutions

Transport,

preservation and

storage

documentation

ready for

prototype

Transport

equipment SAT

Update price

tools +

transport

equipment

configurator

Not Started Not Started Not Started Not Started Not Started Not Started

Integrated Product

and process Design

and optimise

Verification & Validation

Requirement Management

Transport, Installation and Commissioning

readiness

Maintenance and

Repair Operations

readiness and ramp

up

Production Readiness

and Ramp up

Project Management

Cost Management

Project Management

Risk Management

Quality, Safety &

Environment

Commercial launch

Quality

Product Management,

Sales and Marketing

Transport proces

Maintenance

Installation and Commisioning

Design and implementation of

processes for Manufacturing

and Assembly

Design and deploy the supply chain network

Stage 2 - Scoping, Planning & Product Design Stage 3 - System Design and Critical Process Design Stage 4 - Detailed Product & Process Design & Verification Stage 5 - Industrialisation & Prototype Stage 6 - Zero SeriesStage 7 - Serial Production and

Product ValidationStage 1 - Idea Development G1 G2 G3 G4 G5 G6 G7

PM03 PM29 PM27 PM11 PM12 PM26 PM13 PM14 PM59 PM16 PM63 PM31 PM36 PM48 PM56 PM60 PM73 PM22 PM64 PM41 PM45 PM53 PM61 PM23 PM65 PM46 PM50 PM75 PM24 PM67 PM71 PM28 PM25 PM21

RI01 RI02 RI04 RI06 RI10 RI08

BC01 BC02 BC04 BC05 BC06 BC20 BC22

QU02 QU10 QU08 QU22 QU23

CL03CL06 CL10 CL17

VV04VV06 VV07 VV31VV08VV09 VV11 VV16 VV17 VV18 VV21

DI02 DI06 DI09 DI07 DI16 DI26

SC05 SC06 SC09 SC15 SC11 SC24

MR04 MR33 MR29 MR24 MR18 MR31

IC05 IC12 IC13 IC15

TP02 TP06 TP08 TP12

DI17

QU25

IC01

DI33

TP13

DI43

TP15

DI44

QU07QU29

IC36

MR07MR03

IC27 IC28

MR40

IC29

CL24 CL34 CL35

Vestas Way to Market A standard project stage-gate model

Issue Gate 1

Presentation

Have Stage 2

Kick Off

Definition of

handover criterias

between Platform

Management and

Service Engineering

Align Milestone

Plan

Release Project

Management

Plan

Consolidate

planning and

scoping activities

Gate Count

Down G2

Lessons

Learned

Release Project

Management

Plan

Gate Count

Down G3

Lessons

Learned

Have Stage 4 Kick

Off

Update

Communication

Plan

Consolidate

Project Budget

Align Milestone

Plan

Release Project

Management

Plan

Consolidate

planning and

scoping

activities

Gate Count

Down G4

Lessons

Learned

Detail Project

Plan Stage 6

Request

generic

resource needs

Review and

baseline Plan

Release Project

Management

Plan

Gate Count

Down G5

Lessons

Learned

Request

generic

resource needs

Consolidate

Project Budget

Consolidate

planning and

scoping

activities

Gate Count

Down G6

Lessons

Learned

Manage Project

Scope Changes

Handover

between

Platform

Management

and Service

Engineering

Gate Count

Down G7

Project Closure

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Evaluate full

Project Risk

Profile (Pre G2)

Evaluate full

Project Risk

Profile

Evaluate and

escallate sub

project risks

Evaluate full

Project Risk

Profile

Evaluate and

escallate sub

project risks

Evaluate full

Project Risk

Profile

Not Started Not Started Not Started Not Started Not Started Not Started

Establish Cost

Tracking Setup

Cost Target Setting Cost Estimation Cost

Optimisation

Cost Report Cost Report Cost Report

Not Started Not Started Not Started Not Started Not Started Not Started Not Started

CIM case

Evaluation

Quality

Assurance Plan

PPAP Scope &

Plan

Prototype

Control Plan

Inspection Plan

for Prototypes

MSA Execution

& Collection of

Results

PPAP Validation

of Parts &

Documentation

Finalize PPAP

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

SBU Selling

Guidelines for

Early

Engagement

Draft Go-To-

Market Plan

Define

Technical

Market

Documentation

Draft Marketing and

Communications

Plan

Market

Documentation

Plan Locked

Early Selling

Documentation

Package

Complete

Performance

specification

Documentation

Package

Complete

Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Make early

booking

request in GTRS

for Product

Tests

Create Product

Verification

Procedure

(DVPR)

Make early

booking

request in GTRS

for Test of

System

Create

Component

Verification

Plan (DVPL)

Do early

booking

request for

Component

tests in GTRS

Create System

Verification

Procedures

(DVPR)

Reliability

report

Identify test

centres for

Component

test

Execute

Component tests

inside Vestas

Execute

Component

tests outside

Vestas

Write test

report (Product)

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Manufacturing

requirement

definition

Alignment of

Training

Expectations

Production

Planning on MS

Items

Materials and

Production

Master data for

prototype

Production

Basis for

Prototype

Production

Produce

component

prototype

Prepare for

production

training

0-series

production

layout and

process flow

Phase out of old

items

Production

Basis for Serial

Production

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Identify Second

source for

items

Design for

Sourcing

guideline

released (Generic

& project specific)

Should cost

analysis

conducted

Investment plan

and budget for tools

& equipment at

suppliers updated

Preferred

supplier list

Should cost

analysis

conducted

Not Started Not Started Not Started Not Started Not Started Not Started

Impact analysis

for maintenance

and uptower

repair

Update torque

setting diagram

Creation of

Service

Inspection

Instruction (SII)

and Service

Inspection

Form(SIF) ready

for prototype

Application on

material

master for

spare parts

Finalize service

tasklist based

on operations

Finalize

Lubrication

Chart

Create

recommended

spare part list

Prepare

training

equipment

Update process

and process

risk

assessment

(PFMEA)

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Impact analysis

for installation

Process design

for installation

Process risk

assessment for

installation

(PFMEA) ready

for prototype

installation

Installation

sequence

guide, baseline

document and

mechanical

completion

check list ready

for prototype

Training outline Balance of

Plant

Development of

training

material

Preparation for

development of

training

equipment

Training

equipment

production

Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started

Transport

requirement

definition

Transport

business case

Prototype

transport

solutions

Transport,

preservation and

storage

documentation

ready for

prototype

Transport

equipment SAT

Update price

tools +

transport

equipment

configurator

Not Started Not Started Not Started Not Started Not Started Not Started

Integrated Product

and process Design

and optimise

Verification & Validation

Requirement Management

Transport, Installation and Commissioning

readiness

Maintenance and

Repair Operations

readiness and ramp

up

Production Readiness

and Ramp up

Project Management

Cost Management

Project Management

Risk Management

Quality, Safety &

Environment

Commercial launch

Quality

Product Management,

Sales and Marketing

Transport proces

Maintenance

Installation and Commisioning

Design and implementation of

processes for Manufacturing

and Assembly

Design and deploy the supply chain network

Stage 2 - Scoping, Planning & Product Design Stage 3 - System Design and Critical Process Design Stage 4 - Detailed Product & Process Design & Verification Stage 5 - Industrialisation & Prototype Stage 6 - Zero SeriesStage 7 - Serial Production and

Product ValidationStage 1 - Idea Development G1 G2 G3 G4 G5 G6 G7

PM03 PM29 PM27 PM11 PM12 PM26 PM13 PM14 PM59 PM16 PM63 PM31 PM36 PM48 PM56 PM60 PM73 PM22 PM64 PM41 PM45 PM53 PM61 PM23 PM65 PM46 PM50 PM75 PM24 PM67 PM71 PM28 PM25 PM21

RI01 RI02 RI04 RI06 RI10 RI08

BC01 BC02 BC04 BC05 BC06 BC20 BC22

QU02 QU10 QU08 QU22 QU23

CL03CL06 CL10 CL17

VV04VV06 VV07 VV31VV08VV09 VV11 VV16 VV17 VV18 VV21

DI02 DI06 DI09 DI07 DI16 DI26

SC05 SC06 SC09 SC15 SC11 SC24

MR04 MR33 MR29 MR24 MR18 MR31

IC05 IC12 IC13 IC15

TP02 TP06 TP08 TP12

DI17

QU25

IC01

DI33

TP13

DI43

TP15

DI44

QU07QU29

IC36

MR07MR03

IC27 IC28

MR40

IC29

CL24 CL34 CL35

12

Vestas Way to Market What?

The Vestas standard project model for new product and solution introduction:

It delivers transparency, accountability and clarification

A controlled environment for managing all process improvements and initiatives

Project planning tool, ensuring that we have ONE plan throughout

Allows Front loading of our projects and early engagement from the value chain

13

Project Execution Model - Introduction

14

Why?

From:

To:

Many PM roles

ONE generic PM role for

project execution

Introduction of best practise

and common language across

BUs

Different approaches

and governance MAN

Service

TSS

ONE Steering Committee

in project

Unclear

mandates in

local

committees

Project Execution Model

1. Introduction

2.Governing principles

3. Project Governance

4. Project Organization & Setup

5. Generic Project Roles

15

Project Execution Model – Governing Principles

The 7 governing

principles constitute the

fundamental guidelines

and the best practice in

management of the

project.

The principles can be

used independent of

the size, type or

organization of the

project.

16

Initial

Project

Team

Develop Scope

Scope Management

Develop BC

Stage 1

Continued

BC

justification

Learn from

experience

Defined

R&R

Manage by

Stages

Manage by

exceptions

Focus on

products

Tailor to

suit

Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7

Requirement Management

Project Governance

Project Reporting & Escalation

Project Execution

Project Reporting & Escalation

Maintain BC Verify BC

Agree tolerances

Tailoring activities

Learn from earlier projects

Set organisation

Terms & Definitions

Project Execution Model – Governing Principles

Project Governance Tools & Systems

17

Project Execution Model

1. Introduction

2. Governing principles

3.Project Governance

4. Project Organization & Setup

5. Generic Project Roles

18

Control

Cabinets

The purpose of the governing bodies – 3MW Platform/ MAN(CON) as example

19

3MW Platform

Portfolio

Product

Portfolio

Council

3MW Enabler

project

Portfolio board

Gate Keepers

Go-to-market

Committee

Steering

Committee

MAN (CON)

Line

organization

(SVP)

Test

equipment Governing

body Project

execution

Project Execution Model – Project Governance

19

3 roles in the SteerCo

Project Execution Model – Project Steering Committee SteerCo participants directing the Project

Project Contract

/Business Case

Balance demands

Facilitation of final

decision

Recommend User,

Supplier & PM

Owner User Supplier Project Manager

Define User’s quality

expectations

Realize project benefits

Make decisions re. User

requirements & conflicts

Provide User resources

Assess the viability of

the technical solution

and project approach

Accountable for the

quality of the products

Make decisions re.

supplier demands &

prioritization

Provide Supplier

resources

Delivers project scope

within cost, time,

consumption and quality

Leads and motivates the

project team

Presents the project

status and escalates risk

and issues

Manages the information

flow between SteerCo &

project team

20

Project Execution Model

1. Introduction

2. Governing principles

3. Project Governance

4.Project Organization & Setup

5. Generic Project Roles

21

Project Execution Model – Project Setup

22

Project level

Subproject level Work Package

New

installation tool

Project Execution Model

1. Introduction

2. Governing principles

3. Project Governance

4. Project Organization & Setup

5.Generic Project Roles

23

Line Manager

Project Execution Model - Roles & Responsibilities Core responsibilities

Project Manager Sub Project

Manager

Technical Lead Resource

Owner

Leads and develops the

technical solution in

scope

Presents the technical

status and escalates

technical risks and issues

Ensures technical scope

is fully specified and

developed incl. value

chain integration, within

the quality, time, and

costs targets

Accountable for quality

of work performed and

the quality of the

deliverables in scope

for functional area

based on people

allocation

Allocates project team

members with the right

competences at the

right time in the project

Delivers project scope

within cost, time,

consumption and quality

Presents the project

status and escalates risk

and issues to SteerCo

Manages the information

flow between SteerCo &

project team

Leads and motivates the

project team

Delivers sub project

scope within cost, time,

consumption and quality

Presents the sub project

status and escalates risk

and issues to PM

Manages the information

flow between Project &

sub project team

Leads and motivates the

sub project team

24

Project Execution Model - Roles & Responsibilities Supporting responsibilities

Accountable for the

overall Quality readiness

in the project

Identifies and secures

the quality objectives are

met

Approves quality based

deliverables

Ensures QAP

compliance

Quality

Responsible

Cost

Responsible

HSE

Responsible

Product

Manager

Sets cost targets on

system and module level

Secure accurate product

cost estimation for the

full project scope

Provides Finance the

MSI level G7 cost

estimates

Ensures project meet

Cost targets

Provides HSE legislative

requirements for project

lifecycle

Secures the design fulfil

HSE and targeted

market requirements

Evaluates Safety of

product

Issues Declaration of

Conformity

Accountable for

Commercial Business

Cases

Safeguards Project

Contract from a

commercial perspective

Flags and escalates

Project Contract Risks &

Opportunities

Defines and ensures

commercial targets

for project

25

Project Execution Model – Generic Project Roles

26

Copyright Notice

The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any

means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or

anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided “as is” and

Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you.

Copyright Notice

The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any

means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or

anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided “as is” and

Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you.

Thank you for your attention