Transcript Slide 1

Atlas Schindler
Emily Phair - Serge Poltinnikov - Mihai Bledea - Clara Macabuhay
The Team
Serge
Clara
Mihai
Working with
Working wit
Leo
Vitor
Juliana
Working for
Flavio
Fabio
Emily
Executive Summary
Company Description: Schindler is one of the leading global
manufacturers of elevators, escalators and moving walks.
Problem Statement: A bottleneck in the
Engineering Change Order process is resulting in increase in
lead time for approval of designs.
Recommendations: XXXXXXXXXXXXXXXXXXXX
Company Profile
Schindler Transports 900 Million People Every Day
Founded: Switzerland, 1874
Company
Employees: 44,000 worldwide
Products:
1. Passenger elevators for high, mid and low-rise residential and office
buildings
2. Freight elevators
3. Escalators for all applications – malls, airports, theaters, etc.
4. Moving walks
5. Product modernization and innovation
6. Complete maintenance and service – 24/7
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 - 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
Brazil Operations
150 Service Points
Two Plants
*67% from maintenance and modernization
*33% from new products and installation
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 Analysis
Strengths
Consolidated leadership
Diversified portfolio of products
Name brand recognition (Atlas)
70% certified suppliers
Top quality global producer
Opportunity
Weaknesses
Decentralized Management team
Disruptions in communication flow
Lack of adequate human resources
Threats
Growth in relation to 2014/2016 games Strong currency fluctuations
Demand for new construction
Change in regulation of interest rates
US transition to electric elevators
Change in regulatory codes
The ECO Process
Engineering Change Order
R&D
Swiss Engineering
Team
to this ECO in advance.
Planning
Remaining 6
ECO Steps
Specification
Purchasing
Timeline
ECO Orders
Approved
Order
Received
135 days
ECO Process
Orders
Submitted
Elevator
Installation
84 days
Manufacturing
56 days
ECO process Challenges
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 need
time-intensive interpretation and validation.
4. Lead time for tooling is 90 days. - not in all causes, but we can
consider this in the great majority - OK
5. Product charecteristics and mechanical features are different for each
received KA (ECO). - OK
6. Revision from original version to revised version stops the flow
of approval process. - OK
7. Problem finding qualified SAP experts & drawing interpreters - It is not
correct. We have qualified SAP experts and drawing interprets, but they are
involved in others process.
8. Inconsistent deadlines instead of a clearly defined timeframe. - OK
Financial Information
In 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
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
Profit before taxes
Make
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
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
Long-Term
Hire additional staff due to the growing business
BW Reporting tool
Create a team of ECO Approvers
Recommendation
1. lksdnflksndfvlsnkd
2. lksdnflksndfvlsnkd
3. lksdnflksndfvlsnkd
Time Horizon
Short Term:
Mid Term:
Long Term:
Business Model
Short Term:
Mid Term:
Long Term:
Questions
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
2010
1 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/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
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