Philips Lighting Turnhout Practical examples of collaborative - PowerPoint PPT Presentation

www.pwc.com Philips Lighting Turnhout Practical examples of collaborative innovation

Agenda 1. Introducing Philips Lighting Turnhout 2. Introducing Collaborative innovation: a) Our case on wearables in maintenance b) Lessons learned c) Next steps 3. Questions Supply chain innovations March 2016 PwC - Philips 2

Philips Turnhout Philips Lighting, BG Lamps Operations, Turnhout Jan Melis 2016 March 7th

Philips 20% Our business 43% 20 37% Philips Healthcare Philips Lighting Philips Consumer Lifestyle Improving people’s lives through 4 meaningful innovation PwC - Philips Philips Cat Professional

Turnhout LS&E plant KEY FACTS LOCATION  Turnhout, Belgium • Founded in 1955 , continuously growing till 2008 (top year 2800FTEs). Heavy restructuring in 2009 & 2012 & 2015-2017 • World Class high end Burner Manufacturing for HID, Digital Projection & Specialties • Lamps ~ 17 mio pcs , more than 500 different • Competitive HID and SL Lamp Assembly for technical types & concepts EMEA and global niches • Production in shifts where needed 24hrs / 5 • Global Development R&D Center for HID and days. Temp unemployment for flexibility. DPL • Externally certified Q-lab , specialized in light KEY DATA measurement • Mechanization on site ( PiNS ), specialized in • 830 FTEs , of which 150 white color ops, 500 on-line vision system, small part handling and blue color ops, 75 R&D, 65 BG Lamps and 40 laser welding PiNS • 250 M € Sales (2015). • CAPEX: 2.5 M € (2015)

Leading Philips Turnhout: market leader in professional the way VIDEO lighting General HID General HID Outdoor Outdoor Indoor Indoor Sports Sports Horticulture Horticulture Digital Projection Lighting Special Lighting Special Lighting 6

Philips HID Lighting Solutions, our position Some additional figures More than 55% of all major Approx. 45% of all roads in sports event arena’s are Europe are illuminated by equipped by sports lighting from Philips HID lamps Philips Approx. 75% of all HID lamps Approx. 35% of all HID lamps used in retail lighting are made worldwide are produced by by Philips Philips 7 17 Philips Cat Professional

Philips Turnhout wants to gain market share in Operational Excellence during the entire Product Life Cycle a declining market Introduction Growth Maturity Decline Reliably realize growth Pcs/EUR Quality, Innovation but also cost Fluo CFL SON/HPI CDM Halogen Eco-Halo Incandescent Reliably deliver against lowest integral cost Cinema LED Make & Execute cost roadmaps relentlessly TIME 8

Our sales decline 15% per year but this remains a profitable market for long Indoor -30%, Outdoor and Spec -10%, DPL stable, HORTI growing Due to LED penetration, e-commerce, China & economic crisis

Vision : Winning the Golden Tail in conventional lighting Philips strategy: Dual strategy: Winning in LED And Managing the Golden Tail in conventional • Headlines to win the Golden Tail in conventional • Commercial  Capture growth opportunities  Make it easy to sell  Strict pricing strategy • Industrial  World class operational performance and continuous improvement • 3 Focal areas: Cost/ Quality and Supply Chain performance • LEAN program is one of the most important programs  Adapted R&D (Development) program Change focus from product innovation to cost innovation  Employability program 10 21 Philips Cat Professional

Agenda 1. Introducing Philips Lighting Turnhout 2. Introducing Collaborative innovation: a) Our case on wearables in maintenance b) Lessons learned c) Next steps 3. Questions Supply chain innovations March 2016 PwC - Philips 11

Supply chain innovations Collaborative innovation is a concept where different stakeholders in the supply chain join their competences around a supply chain challenge or opportunity.” Emerging technologies Smart robotics Big data PwC @ SCI 2014 PwC @ SCI 2015 with Google glass with 3D printing Artificial Smart sensors intelligence Smart supply chain + + = Industry expertise Supply chain expertise Technology expertise Supply chain Company needs & insights Linking process & technology State of the art solutions innovation The joint result will be better than the individual pieces. A possible collaboration in 3D Printing

2a) Wearables in field maintenance Introducing the case Werabales in maintenance + + + + = Industry expertise Supply chain expertise Technology expertise Supply chain Company needs & insights Linking process & technology State of the art solutions innovation The joint result will be better than the individual pieces. A possible collaboration in 3D Printing

2a) Wearables in field maintenance The approach Demo Pilot Roll out Discovery  Pilot scope  Selecting demo  Pilot  Identification of  Be inspired process implementation new application  Try out  Feedback to areas technology provider  Providing demo  New application  Providing overview hardware  Distance support areas in of technology and  Setting up demo  Capture learnings maintenance and potential benefits process operations  Technical support  Minimum viable  Providing demo  Technology next  Technical product software steps improvements 1 day 2 wks 10 wks Supply chain innovations March 2016 PwC - Philips 14

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Discovery Linking business challenges and opportunities with new technologies: Supply chain innovations March 2016 PwC - Philips 15

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Demo We started with 1 machine and 1 checklist procedure from facility maintenance: Weekly routine: Process inefficiencies:  No real time information  No trend monitoring  Only reactive maintenance  Double registration  Risks for errors Machine  Reporting Technician ‘s desk Weekly report to supplier Supply chain innovations March 2016 PwC - Philips 16

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Demo We started with 1 machine and 1 checklist procedure from facility maintenance: Weekly routine: Old process New process Investment = 0 € (hardware provided by PwC) Resource = 1 day (to setup solution) March 2016 PwC - Philips 17

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Demo Results after 2 wks: People Process • Enthusiasm created • Process improvement proven • Acceptance by people • Improvement area’s identified • User feedback Technology • Insight in hardware • Insight in software March 2016 PwC - Philips 18

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Pilot In a period of 3 months, all facility maintenance procedures were • implemented in Proceedix • The software was upgraded several times, based on our feedback • Some pictures: March 2016 PwC - Philips 19

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Pilot Pilot results:  The whole solution is implemented and used by all facility maintenance technicians  This enabled us to have a soft saving of 6 % on our facility budget March 2016 PwC - Philips 20

Demo Pilot Roll out Discovery 2a) Wearables in field maintenance Roll out Maintenance:  We will implement this solution also for other teams and procedures  We are looking into involving our suppliers for shared maintenance Other functional areas:  We see added value for all operations teams to create a paperless factory:  Eg. Out of control action plans for operators  Autonomous maintenance checklists  Quality checks – registration sheets  Our solution has been shared on our local improvement market March 2016 PwC - Philips 21

Agenda 1. Introducing Philips Lighting Turnhout 2. Introducing Collaborative innovation: a) Our case on wearables in maintenance b) Lessons learned c) Next steps 3. Questions Supply chain innovations March 2016 PwC - Philips 22

2b) Lessons learned • We never considered the use of wearables in our processes before we started Think big, start small • • The demo was crucial to convince us, and didn’t require any investment (no hurdles) • By approaching this in a practical and pragmatic way, we were able to motivate our people and create enthusiasm We didn’t need to innovate alone, the power of this setup is the collaboration • + + = Industry expertise Supply chain expertise Technology expertise Supply chain Company needs & insights Linking process & technology State of the art solutions innovation March 2016 PwC - Philips 23

2c) Next steps • Running topic for collaborative innovation = 3D printing in our spareparts supply Emerging technologies chain + + = Industry expertise Supply chain expertise Technology expertise Supply chain Company needs & insights Linking process & technology State of the art solutions innovation March 2016 PwC - Philips 24

Agenda 1. Introducing Philips Lighting Turnhout 2. Introducing Collaborative innovation: a) Our case on wearables in maintenance b) Lessons learned c) Next steps 3. Questions Supply chain innovations March 2016 PwC - Philips 25

Questions Supply chain innovations March 2016 PwC - Philips 26