Benefits of Standardisation Experience @ Siemens
ISO General Assembly 2011
New Delhi, September 22, 2011
Confidential / © Siemens AG 2011. All rights reserved
Standards allow us access to global markets
Market access
Switchgear
products
Gear box
Rotating
machines
MCB, RCBO,
Fuses
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Confidential / © Siemens AG 2011. All rights reserved
Rotating machines are very widely used in Industry
Background - Energy efficient LV motors
1
Industry consumes nearly 40% of energy produced
2
65% of energy in industries is used to drive motors
3
85% of the motors used in industries provide only standard efficiency
4
IS 12615 standard which recommends higher efficiency covers ~90 % of above motor
sizes
5
Installed base of Motors confirming to IS 12615 in market in FY 05 < 1%
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Confidential / © Siemens AG 2011. All rights reserved
Despite IS 12615 being published in 2004, slower offtake of eff1 motors even in 2009 laid the foundation for
this project
Key milestones - Energy efficient LV motors
Walk the talk
Our refusal to offer lower efficiency motors (eff2) even
though there was a large demand from the industry
Convey the rationale to our sales organisation as well as
channel partners
Close working with
regulators, thought leaders
First Electric Motor Manufacturers to initiate Star
Labelling for industrial Electric motors under BEE’s
Standards & Labelling Program
First in motor industry to be certified by BEE
Working closely with International Copper Promotion
Council, India
Marketing and Sales tool kits like Energy Saving Plan
(ESP) / Payback Estimation Program (PEP)
Engaging with the market
Payback oriented pricing structure
Promoted field Efficiency Audits & Health Checkups for
motors
Facilitating financing models for investments in eff1motors
Created awareness thru various seminars and exhibitions
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Confidential / © Siemens AG 2011. All rights reserved
We have been able to create sustainable value for our
customers and environment by offering "only eff1" motors
Estimated Results FY 11 - Energy efficient LV motors
Share of eff1 motors is growing ~60% p.a.
Corresponding growth in savings* ~90% p.a.
100%
CO2 reduction
90%
60%
0%
FY 02
1%
3%
16%
FY 05
FY 08
FY 11
LV Motor market in kW
kWh saving
FY08
FY09
FY10
FY11
FY12
Eco savings in kWh
* Assuming energy saved due to higher efficiency motors
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Confidential / © Siemens AG 2011. All rights reserved
Process driven Quality Management system has
significant contribution in our growth
Infrastructure development FY 00 - 10
Sales Engineers
Our Sales Growth
1.6x
Channel Partners
1.6x
1)
Sales offices
1.3x
CRM
No. of new products
PLM
2.8x
R&D Manpower Engineering Manpower
2.1x
4.7x
12x
No. of Factories
1.5x
FY 00
FY 10
SCM
Factory Employees Warehouse area
(000 sq m)
1.1x
5.3x
1) No. of territory office ~30 (FY00) to 51 (FY10)
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Confidential / © Siemens AG 2011. All rights reserved
Intangible business impact:
There are many benefits of active participation in
Standardization & Regulation Management
Benefits of Standardisation and Regulation activities
Save time and money
make design and manufacturing simpler, cleaner and surer
improve the quality of life and that will contribute to technological
progress
Improve safety and quality
encounter new and valuable ideas
help you to avoid making costly mistakes
Influence content
Standards are the compromise result of competing interests
Build acceptance in global
markets
Governments require evidence of manufacturing to standards when
specifying contracts
purchasers require products to be built to certain, standardized
specifications
Develop anticipatory
intelligence
acquire information that enables you to anticipate, before other
stakeholders, circumstances that have not yet widely manifested
themselves
Use customer networks
identify consumer needs and conceive new products through
networking with user representatives on standards committees
Recognition
enhances industry and peer recognition
offers a way to overcome some of resources limitation
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Confidential / © Siemens AG 2011. All rights reserved
Thank you
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Confidential / © Siemens AG 2011. All rights reserved