19 May 2009 © SKF Group
Agenda1. Introduction2. SKF Documented value created for customers 20083. SKF Knowledge Engineering4. Customer Value Examples
19 May 2009 © SKF Group
• Customers are looking for immediatecost reduction
• SKF’s service & solution offerings are proving more resilient during this downturn
• It is more important than ever to demonstrate added value
• Total Cost of Ownership is more important than price
Current Situation
SKF Knowledge Engineering can
help find value and can deliver it!
How we define measurable value
• By SKF Documented Solutions Program or contract key performance indicators (KPI)
• Presented in financial language
• Aligns with customer objectives
• Provides SKF (one or more of):• Improved profit levels
• Superior pricing
• Increased volumes
19 May 2009 © SKF Group
SKF documented customer value added 2008(SEKm)
• Over 2.8 BSEK documented
• Over 18,000 cases of documented customer value
• These can be leveraged to show other customers proof of SKF’sadded value
Europe, Middle East& Africa, 1,373
Asia Pacific, 660
North America, 415
Latin America, 400
19 May 2009 © SKF Group
Where was value created in 2008?
• Of the documented value created in 2008 alone,
• 58% was related to increased availability and capacity
• 15% was directly attributable to short term cost savings in the areas of productivity, reduced component usage, reduction of spare parts, reduction of scrap and HSE (Health, Safety & Environmental)
19 May 2009 © SKF Group
19 May 2009 © SKF Group
SKF delivers & receives value through:
•Value added products
•Value added services
•Advanced solutions –Knowledge Engineering
SKF Knowledge Engineering
SKF Knowledge Engineering – new market offers
E2 bearings & greases for electric motors and fans
Machine condition advisorDry lubrication system for conveyors
19 May 2009 © SKF Group
Customer engagement
Program Management
Business Case (Documented Solutions Program)
Implementation plan & quick scan / Maintenance strategy review
Client Needs Analysis (CNA)
3,800 casesSEK 2,840 m
approved savings
Culture
TechnologyProcess
19 May 2009 © SKF Group
Replicate and improve
Replication opportunities
19 May 2009 © SKF Group
Document value created (DSP)
Continuous improvement
Value AddedOLS $ 365,000
Lubrication System $ 240,000
PdM Inhouse* $ 17,500
PdM Outsourced* $ 90,000
Training* $ 15,000
Inspection/Reman* $ 20,000
MaPro* $ 60,000
• To other customer sites within same customer• Within SKF – share knowledge• Increase our customer base and references
Paper company in USA
Pulp and Paper - SKF Certified Rebuilder
Customer need:• Improve electric motor reliability• Eliminate infant motor mortality• Reduce total cost of motor ownership
SKF solution:• SKF Certified Rebuilder program
Customer benefits: • $620,000 in reliability incidents savings and growing• 32-39% total electric motor repair cost reduction • Stronger suppliers supporting each other, adding more
value
SKF benefits:• SKF revenues, Value added, profit
19 May 2009 © SKF Group
Food & Beverage company in USA
Food & Beverage – Lubrication SystemsCustomer need:
A method of lubricating palletizer chains safely, without removing guards, and stopping the production line.
SKF solution: SKF Vogel Lubrication Systems drip chain lubrication system for palletizer chains was designed and supplied. System includes: pump unit, piston distributors, hardware, fittings, tubes & nozzles.
Customer benefits: • System eliminates safety hazard of manual lubrication and
cover removal• DSP has calculated an annual saving of $76,250
SKF benefits:• Improved SKF perception as value added, solution provider in
the lubrication systems area
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Chemical company in Belgium
Chemical Industry – Total Productive ManufacturingCustomer need:The management wanted to improve the productivity and efficiency of some of their production sites by implementing Total Productive Manufacturing (TPM) as a continuous improvement programme.
SKF solution:SKF Asset Management Services has conducted 17 different TPM improvement projects, introduced Key Performance Indicators and extensive training programs for maintenance and production people.
Customer benefits: • Total sustainable cost savings: € 670,000 annually• Increase of the average availability of the production lines from 90% to 97%• 220 trained employees in TPM methodology
SKF benefits:• Being the preferred business partner for TPM and maintenance improvements• Creating new profitable consulting services such as ODR, KPI’s• Improvements driven by the SKF AEO model, with future opportunities
19 May 2009 © SKF Group
19 May 2009 © SKF Group
Customer need:Nestle Prepared Foods – Solon, OH facility needed a tool that would enable their maintenance personnel to perform basic predictive maintenance tasks without extensive training or experience in typical predictive technologies.
SKF solution:The new SKF Machine Condition Advisor provides the customer with a simple, portable tool that provides overall velocity, acceleration and temperature readings.
Customer benefits: During beta testing the customer documented a gearbox with excessive vibration. The gearbox was removed from service during planned downtime, avoiding unplanned downtime cost of $4,200 and potential additional replacement cost of the gearbox is $2,700. Based on initial success the plant is increasing the assets being monitored.
SKF benefits:• The MCA is now documented within Nestle as a valuable tool to be used in
developing basic predictive maintenance routes.• Replication opportunities.
Nestlé Prepared Foods Company, USA
Food Industry – New Market Offer
Energy company in Europe
Customized seals keep contamination out
Customer need:In order to extract material needed to generate energy, a lot of mining debris has to be removed. During this process abrasive material, like minerals, sand, dust etc have heavy effects on the technical equipment.
SKF solution:SKF SensorMount Technology to adjust the required clearance during the mounting process.The new solution solving the customer need consists of: • Two pieces of sealed spherical roller bearings• A special designed seal• Mounted with the help of the already existing SensorMount technology
Customer benefits: • Much longer service lifetime (+ 50%) having the result of no short-time bearing failures• Reduced downtime and maintenance costs and reduced costs for re-lubrication. • Total benefit of 146,000 EUR
SKF benefits:•Added value due to combination of bearings and seals into one solution.
19 May 2009 © SKF Group
Key business message
• Industry is still buying…if ROI is short term
• SKF delivered over 2.8 BSEK in value in 2008
• SKF in return benefits from increased sales, margin improvements and customer retention
• SKF delivers this through unique products, services and solutions
SKF Knowledge Engineering can help find value and can deliver it!
19 May 2009 © SKF Group