GKN at a glance
Agenda
9:00 – 9:15
Meet & Greet
Bob Willig
9:15 – 10:15
GKN & Torque Presentation
Bob/Jochen
10:15 – 10:45
Break
All
10:45 – 11:00
PPE
Mike Erdt
11:00 – 12:00
Plant Tour/Plant 1
Mike Erdt
12:00 – 1:00
Lunch
All
1:00 – 2:00
Plant Tour/Plant 2
Mike Erdt
2:00 – 2:30
Wrap Up
Bob Willig
2
Every day at GKN,
we drive the wheels of hundreds of millions of cars,
we help thousands of aircraft to fly,
we deliver the power to move earth and harvest
crop and we make essential components for
industries that touch lives across the globe.
3
GKN at a glance
GKN Driveline
GKN Powder
GKN Aerospace
GKN Land Systems
Metallurgy
World leading supplier
of automotive driveline
systems & solutions
World leader in the
manufacture of sintered
components
Focused on solutions
that create weight,
space and fuel savings
Manufactures precision
automotive, industrial
and consumer products
Committed to
innovation
Largest powder
producer in North
America
Supplier to the global
aviation industry
Leader in the
manufacture of highly
complex composite
aero structures and
engine products
Developer of fuel
efficient solutions to
lower emissions
4
Supplier to the global
agricultural,
construction, mining
and other industrial
markets
Innovation within
renewable energy and
mass transit solutions
Global aftermarket
distribution and service
GKN at a glance
49,700 people
Global footprint – 40 countries
Market leading businesses
Above market growth
Operational excellence
Other
GKN Land
Systems
GKN
Driveline
GKN
Aerospace
GKN
Powder
Metallurgy
GKN 2013 Sales
£7.6bn $US 12.7bn €9.1bn
5
GKN Driveline
driving tomorrow’s technology
GKN Driveline
Largest business of global engineer GKN
Market leading driveline technologies
•
•
•
•
CVJ Systems
AWD Systems
Trans Axle Solutions
eDrive Systems
Broad global footprint
Established long term global relationships
Focused engineering resource providing
driveline solutions
Expert customer specific account teams
7
GKN Driveline Executive Team
Chief Executive
Andrew (Andy) Reynolds Smith
Regions
Functions
President – Americas
Robert (Bob) Willig
Senior Vice President –
Finance and IT
Bill Curral
Senior Vice President –
Engineering
Rob Rickell
President – Europe
Helmuth Rohregger
Senior Vice President –
Human Resources
Monique Carter
Senior Vice President –
Commercial and
Customer Management
Stefan Magirius
President – Asia Pacific
Arnaud Lesschaeve
Senior Vice President –
Program Management
and Strategy
James (Jim) Voeffray
Senior Vice President –
Lean Enterprise and
Manufacturing Engineering
Marc Vuarchex
Senior Vice President –
Purchasing and
Supply Chain
Philippe Roman
Senior Vice President –
Quality and
Risk Management
Trevor Pillay
8
GKN Driveline – Sales 2013
£3,416m US$5,699m €4,106m
Trans Axle
Solutions
7%
Americas
36%
eDrive
Systems
1% Other
1%
AWD
Systems
29%
Europe
37%
Asia
Pacific
27%
CVJ
Systems
62%
by region of origin
by product segment
9
GKN Driveline – Sales 2013
VW
15%
Other
18%
Volvo Cars
4%
GM Group
12%
Mitsubishi Group
4%
BMW
4%
Fiat Chrysler
11%
Tata Group
5%
Toyota Group
6%
RenaultNissan
10%
10
Ford Group
11%
GKN Driveline – An Excellent Global Footprint
GKN Driveline
end-2013
£3.42 billion
Sales
United
States
c.24,000
Employees
U.K.
France
Spain
Italy
Slovenia
Turkey
45 Manufacturing Plants
22 Countries
Sweden
Poland
Germany
South
Korea
Japan
China
India
Mexico
Thailand
Singapore
Taiwan
Malaysia
Colombia
Manufacturing plant
Australia
Brazil
Joint Venture
Corporate office /
Engineering centre
11
GKN Driveline – 4 Strong Product Segments
CVJ Systems
Trans Axle Solutions
AWD Systems
eDrive Systems
CV Joints
Propshafts
Differentials
eAxles
Sideshafts
Transfer Units
Limited Slip &
Locking
Differentials
eTransmissions
AWD Couplings
Disconnects
Final Drive Units
12
eMotors
GKN Driveline – CVJ Systems
efficient thinking
The technology leader in CVJ sideshafts
Weight, space and fuel savings
Fuel saving technology
Maximised performance
countertrack™ CVJ
Ballspline system
smallest
lightest
most efficient
maximise offroad angle & movement
Reduce NVH
Improved efficiency
Solutions provider
Most extensive range of CVJs
Widest global footprint
Manufacturing CVJs in 20 countries
High performing, economic
solutions
High performing, economic
solutions
Twinball (ST) joint with Face Spline
Twinball (ST) joint with Face Spline
50% higher torque transfer
54 degree articulation – tightest
turning
reduced assembly time & backlash
50% higher torque transfer
54 degree articulation – tightest
turning
reduced assembly time & backlash
13
GKN Driveline – AWD Systems
dynamic thinking
Reduces everything but
performance
The global leader in efficient all-wheel
drive systems
DTF propshaft interface
Unique capability to develop and
manufacture full AWD Systems
reduces weight
reduces assembly time
reduces packaging space
reduces system costs
AWD Disconnect
Power Transfer / Rear Drive Unit
seamless engagement to AWD
mode
no compromise all wheel drive
improved efficiency
expert all wheel drive capability
World-class engineering over many
years
Optimized components through full
system understanding
Performance AWD
High performance coupling
TWINSTER®
EMCD®
disconnect and LSD combination
efficiency and performance
active yaw control
optional torque vectoring
14
electric or hydraulic actuation
low drag torque
Optimised connection methods
GKN Driveline – Trans Axle Solutions
unlimited thinking
A leader in conventional and controlled
differentials for transmissions and axles
Manufacturing in all regions of
the world
Global supply
Improved dynamic performance
Open Differential
Electronic Torque Manager (ETM®)
smaller packaging
weight saving
globally available
maximum traction
maximum stability
Full product range
Established and experienced player
Adaptable sophisticated
technology
Off-road expert
Electronic Torque Vectoring
Electronic Locking Differential
controlled fast cornering for premium
cars
15
fast locking rear axle for extreme offroad conditions
GKN Driveline – eDrive Systems
Electrified thinking
A pioneer in advanced electric and
hybrid drivelines
Systems leadership capability
Hybrid with improved
performance
Economies of scale
eAxle System
eTransmission Family Approach
30% fuel saving
four driving modes
Standard product range
Compact
ultra quiet
choice of interfaces & gear ratio
250,000 vehicles on the road
eTransmissions success in each
major automotive region
Broader range of motors
Proven technology
Dynamic partnership
Multi-mode eTransmission
Integrated Motor & eTransmission
total control of fuel economy
seamless switching between modes
16
advanced electric motor technology
low weight
compact packaging
Driveline systems and solutions that deliver
17
GKN Driveline Americas
Torque Business Unit
CVJ Systems
AWD Systems
Trans Axle Solutions
eDrive Systems
Torque Business Unit
Bowling Green, OH
Newton, NC
Auburn Hills, MI
Transaxle Solution
Electronic Locking Differentials
Open Differential
Torque Management Devices /
Clutches
Top Line Progression
AWD Systems
Final Drive Units
Power Take-off Units
Rear Drive Modules
AWD Disconnect
Systems
19
Technical Center
Product Engineering
Program Purchasing
Our Team
20
Our Team
President
Americas
Bob Willig
.
.
.
VP Operations AWD
& Transaxle Solutions
Jochen Wieland
Functions
Operations
Plant Director
NWT
Mike Erdt
Purchasing
Director
Todd Tinnell
Director of Program
Management
Markus Herrmann
Plant Director
BGR
Craig Zimmerly
Director Product
Technology
Edward Kwon
Business Analysis
Director
David Wilson
Program Director
GM AWD
Brad Murphy
Finance
Director
Kevin Ruff
Human Resources
Director
Kimberly Byerley
Commercial
Director
Owen Nagy
21
Our Team
More than 900 great
people
22
GKN Driveline Newton
23
23
GKN Driveline Newton
Location: Newton, North Carolina
784 Employees as of October 2014
Total Sq. Ft. 505,000 / 46,914 m2
Plant 1
248,000 Sq. Ft. / 23,038 m²
Central Administration
Spiral Bevel Gear, Housing and Cover Production
Assembly
Plant 2
257,000 Sq. Ft. / 23,876 m²
Logistic Services
Assembly
Axle Development Lab
24
GKN plc – Excellence Award for Customer Service
25
GKN Driveline Torque
Products
26
26
Rear Final Drive Units (FDUs)
646
646-V
649
648
27
Front Final Drive Units (FDUs)
650
655
28
AWD PTUs (Power Take-off Units) and Rear FDUs
760
790
780
660
690
680
29
755
715
New Technology – Booster & Twinster Clutches
665 - RDM TTD Booster
665 - RDM Twinster eLSD
30
New Technology AWD Disconnect
Disconnect PTU
Disconnect RDM
RDM ETM Module
31
New Technology AWD Disconnect
665 RDM eLSD
765 PTU Disconnect
32
New Technology Twinster Torque Vectoring
Twinster
Torque Vectoring
33
Our Strategy
34
Our Strategy
35
Lead in Chosen
Markets
36
Lead in Chosen Markets
Focus on AWD systems, Premium FDU’s, EDL, Clutches
Clutches provide
most of growth
– GM D2
Considerable growth
on FDU’s
– BMW Front FDU
– Mercedes Front
FDU (KBO)
37
Leverage Global
Footprint
38
Leverage Global Footprint
Localize Gear-Set manufacturing
28% of all gearsets
used are currently
imported from:
– Tochigi for
Chrysler MK
– Koeping / Nagoya
for GM Lambda
PTU
– BMW DGF
39
Leverage Global Footprint
Localize Gear-Set manufacturing
BMW
Chrysler
1.19 mio
units
2.47 mio
units
Ford
GM
Mercedes
Subaru
2014
2019
40
Localization and new
business wins help
to diversify
distribution to a
more robust
business case for
the high capex gearset manufacturing
area
Global Mega Platforms - ‘Go East to win the West’
Revenue Growth on Large
and Mega Platforms
% to Total Revenue
Large and Mega Platform revenue will be over 80% of total revenue for Torque
Global Footprint and global capabilities will be a decisive factor for sourcing by the OEM’s, GKN needs to
strengthen it’s global organisation in regards to:
Commercial
Program Management
Manufacturing Systems
Engineering
Purchasing / Supply Chain
41
Technology Driving
Margins
42
Technology Driving Margins
Disconnect systems, Clutches, EDL, ECU incl. Software
Example Lambda RDM and PTU  C1UX AWD System
Future State
Current State
GKN Content:
–
–
GKN Content:
–
–
Assembly
RDM Gearset
–
Big increase in complexity
and scope requiring new
skills (hydraulics, software,
electronics, ..)
Approx. $850
–
–
Assembly
RDM & PTU
Gear-set
PTU
Disconnect
system
Single /
Twin
hydraulic
Clutch
GKN ECU &
Software
Approx. $1,050
43
Technology Driving Margins
Disconnect systems, Clutches, EDL, ECU incl. Software
Example Ford C520 Global RDU  Ford C2 ETM
Future State
Current State
GKN Content:
–
–
GKN Content:
–
–
Assembly
Machining
of Diff hsg
Assembly
GKN ECU &
Software
Could open door to
complete RDU
Approx. $35
Approx. $200
44
Operational Excellence
45
Operational Excellence
Strong Focus on
People Development
Engagement
Business Process Improvement
Lean Fundamentals
to drive CI Culture
46
Operational Excellence
However beautiful the
strategy, you should
occasionally look at the
results.
Winston Churchill
47
Operational Excellence
Integrated System for
high level business and
departmental KPI’s,
linked to
– Individual CI plans
– Departmental PVD boards
– PDP goals
48
Sustain Growth Above
Market
49
Sustain Growth Above Market
Focus on Strategic Products
units
Strategic Products
only!
Internal clutches are sold as
part of a FDU
Twin systems are counted
as two units
50
Break
51
Plant Tour
Process Highlights
52
52
Gear Development
Gear Calculation
Prototyping and
Validation
Process Improvement
S+ Tool Life
$0.800
Cost/Pcs
$0.700
$0.600
$0.500
$0.380
0.350
$0.400
$0.670
$0.300
$0.200
$0.100
$0.000
$0.203
$0.238
$0.238
$0.196
$0.224
$0.000
$0.000
$0.000
$0.000
$0.000
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$0.254
$0.000
Jan
Actual
YTD
Forecast
-$21,195
$23,741
$11,955
$7,575
$8,131
$7,387
$6,712
q
p
p
p
p
p
p
Warranty / Reliability
Area’s influenced by the Axle
Development Department
Production Support
7.00%
Teststand FTT Fail
6.00%
Teststand Scrap
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2009 YTD
2010 YTD
2011 YTD
7.00%
6.00%
648/646V Teststand Scrap
PTU Teststand Scrap
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
1st Quarter
2nd Quarter
53
3rd Quarter
Noise Correlation
Spiral Bevel Gear Manufacturing
Ring and Pinion Soft Turning
100% Process Measurement w/ Machine Monitoring for Critical Dimensions
Spline & Thread Rolling
100% Camera Monitoring
Gear Tooth Generating
KIMOS feedback loop for predicative material distortion effects
Vacuum Gas Carburizing Heat Treat
Propane Atmosphere with Nitrogen Quench
Part Specific Heat Treat Recipe
Environmentally friendly – No waste quench oil
Pinion Journal Grinding
In-process Machine Feedback w/ 100% Post Process Gaging
Pitch Chuck Clamping
Ring Hard Turn & Drill
Pitch Chuck Clamping
Hard State – Turning Drilling, and Threading
100% Post process Bore Gaging
Lapping and Testing
100% Measurement and Recording of Run-out, Drive and Coast MTE 1st and 2nd Order.
54
Machining Centers Manufacturing
PTU & RDM Housing Machining
High Speed 5-Axis Single and Twin Spindle Automated Machining
Integrated 2nd Operation - Single Spindle Machining for drain holes and removal of clamping tabs,
Washing, and Leak Testing
Dimensional Gage Stations - 100% measure critical dimensions and mark housings w/ measurement
and traceability information used by Assembly.
PTU & RDM Cover Machining
High Speed 5-Axis Vertical Single Spindle Automated Machining
Automatic Fixture Clamping with air confirmation error proofing to assure part is clamped properly.
55
Laserwelding
High precision CO2 TruFlow Laser Welding process
Force and Distance controlled press process prior to welding – Input Shaft to
Ring Gear
In process monitoring system and data tracking through Gear Set Number
Mini Lab for frequent quality checks during production – batch control
Laser Cell prepared with Wire Feed to be able to implement Differential Welding
(Cast Iron)
56
High Volume Assembly – New Generation
Less complex Single Station concept to
improve uptime
Rework and material inside the loop for
optimal space utilization
Quick Change over
Minimized foot print
Operator friendly design
Manpower flexible
100% Data tracking
High amount of error proofing
70 sec cycle time, with easy upgrade to
50sec
Decoupled test stand motor (belt drive) to
minimize influence on NVH test
Independent EOL loop from Assembly
57
Quality Certifications and Capabilities
ISO/TS 16949:2009
EN/ISO 14001
OSHAS 18001:2007
CQI-9 Certified
Six-Sigma and Red X trained staff
GM-Quality System Basics
Fully equipped Metrology Lab
Fully equipped Metallurgical Lab
On site incoming inspection facility
On site supplier quality support group
58
Supply Chain Management / Logistics Execution
Collaborative Web-Based supply chain management tools
Supply Chain Synchronization / Pull Replenishment
Real Time data sharing
Freight cost/unit down during inflationary fuel cost periods
Year-over-year Inventory Reductions
GAP
3PL’s
Supply
Base
59
SAFETY REQUIREMENTS FOR VISITORS
Requirements:
•
All visitors must wear
GKN Safety Vest when
entering shop floor area
•
All visitors must wear
safety shoes (steel or
composite toe) when
entering the shop floor
•
All visitors must wear
safety glasses
60
Thank You
61
61