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GPS POSITIONING
GPS IN GERMANY
TABLE OF CONTENTS
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DAVID BRADLEY - EVP ASSYSTEM GPS
ALEXANDER GRAF - CEO GERMANY & VP INDUSTRY
GPS ON THE MOVE: NOW 14 GPS ON THE MOVE: GOING FORWARD 19
GPS IN ACTION - CASE STUDIES 33 ROCH THALLER - VP AUTOMOTIVE & TRANSPORTATION
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A TRUSTED PARTNER IN THE DEVELOPMENT OF END-TO-END ENGINEERING SOLUTIONS FOR TECHNOLOGY INTENSIVE SECTORS
GPS POSITIONING
Positive market dynamics
Full product life-cycle coverage in all technology intensive sectors
3 fundamentals: People, Processes & Intellectual Property
Global and integrated network to support our clients
8,5001 TOTAL STAFF
10 COUNTRIES
€530m IN REVENUE IN 2015
1 Employees, contractors and staff at subcontractors
Aerospace Automotive Industry Transportation
Key drivers
Technology intensive sectors
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R&D OUTSOURCING MACRO TRENDS GPS POSITIONING
MARKET DEMAND
Technical assistance Sub project Project Transformational
outsourcing Business process
outsourcing
COMPETITION
High number
Suppliers with critical mass (100 FTE min)
Reduced panel of suppliers (< 20)
Privileged partners (~4)
Principal partner (1-2)
GPS TODAY
SUSTAINABILITY SAFETY VALUE FOR MONEY IOT
Future demand drivers
Supply chain consolidation trends
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POSITIVE MARKET DYNAMICS FOR GPS GPS POSITIONING
AUTOMOTIVE INDUSTRY TRANSPORTATION
GLOBAL MARKET
AVAILABLE MARKET
AEROSPACE & DEFENCE
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FULL PRODUCT LIFE-CYCLE COVERAGE IN THE 4 GPS SECTORS GPS POSITIONING
DESIGN IN-SERVICE SUPPORT PRODUCTION
AEROSPACE
INDUSTRY
TRANSPORTATION
AUTOMOTIVE
Airframe engineering Propulsion systems Interiors Avionics
ADAS/e-mobility Body in white/Trim Infotainment Embedded electronics
prototyping
HMI systems Connectivity Product design
Signalling Safety Train design/TCMS Independent safety Assessment
Upgrades and
modifications Life cycle cost optimisation
Incident analysis System test and validation
Cybersecurity Field support
Total cost of ownership optimisation
Revamping
Serial support Head of version engineering Product test/Quality Manufacturing/Supply chain
Process design & Set up Manufacturing support Supply chain management
Value engineering Supply chain management Process automation
Supplier management
Indicative/not exhaustive
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3 FUNDAMENTALS GPS POSITIONING
People Development
Assystem Institutes dedicated to training
Remote working
International mobility
Continuous professional development
PEOPLE INTELLECTUAL PROPERTY PROCESSES
1 2 3
Global Management System Design management Process automation Project & risk management Delegated design
authorisation Independent approvals
EN9001 EASA- DOA
R&D Projects Cubesat Amphibian MiTu
IPR Processes S/W test Assyst-me
Partners Cellular Core Tech
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CONTINUOUS INVESTMENT IN PEOPLE GPS POSITIONING
Project Management Institute Aerospace Institute Automotive Institute Systems Institute
Employee training is a priority for Assystem
Institutes created to train and develop
GPS expertise
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STATE-OF-THE-ART PROCESS MANAGEMENT GPS POSITIONING
Client requirements (Airbus, Rolls-Royce, Alstom)
International standards (ISO 9001, EN9100, PMI,…)
Common processes for all geographies
GPS GLOBAL MANAGEMENT SYSTEM STATE-OF-THE-ART PROCESS MANAGEMENT
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INTELLECTUAL PROPERTY - EXAMPLES OF INNOVATION GPS POSITIONING
CUBE SATELLITE MITU CELLULAR CORE TECH
HARD- AND SOFTWARE SOLUTIONS FOR TESTING
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GLOBAL NETWORK AND LOCAL PRESENCE GPS POSITIONING
Strong pan-European presence with key positions in France, UK and Germany
Capabilities and nearshore centre in Romania
Capabilities and offshore centre in India
Emerging North American centre
1Employees, contractors and staff at subcontractors
8,5001 total staff in 10 countries
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NEARSHORING: EXAMPLE IN THE AUTOMOTIVE SECTOR GPS POSITIONING
> 730 Automotive engineers
> 20 years offshore expertise in Romania
2 premises Bucharest, Iasi
Local front offices close to European automotive clients
Global technical office support from Automotive Engineering Centre
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AUTOMOTIVE ENGINEERING CENTRE AT THE HEART OF OUR NETWORK OF CAPABILITIES
AUTOMOTIVE ENGINEERING CENTRE
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ORGANISATIONAL STRUCTURE: GEARED TO FACILITATE GROWTH GPS ON THE MOVE: NOW
Strategic roadmaps Global client development
NEW COUNTRY
Geographical expansion facilitated by regional model
Limited effect on organisation when operations start up in a new country
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STRATEGIC BUSINESS UNITS REGIONS
Operations/Project delivery Capability development
AEROSPACE AUTOMOTIVE
INDUSTRY TRANSPORTATION
SPAIN/ PORTUGAL
ROMANIA
GERMANY
NORTH AMERICA
INDIA
UK
REGIONS PARIS SOUTH WEST
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KEY CLIENTS IN OUR 4 SECTORS GPS ON THE MOVE: NOW
ROLLS ROYCE
AEROSPACE AUTOMOTIVE INDUSTRY TRANSPORTATION
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RECENT GROWTH DYNAMICS GPS ON THE MOVE: NOW
Aerospace Automotive
Both in
&
HEALTHY TO VIGOROUS ORGANIC GROWTH
CHANGE IN INDUSTRY & ACTIVITY MIX
33% in Automotive1
vs < 25% in 2014
35% in manufacturing
& in-service support activities1
vs 10% in 2014
DECREASE IN STAFFING ACTIVITY IN GERMANY
2% in LAK1
down from 4% in 2014
1 Based on total H1 2016 GPS revenue
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BREAKDOWN OF REVENUE BY LIFE-CYCLE PHASE1
GPS ON THE MOVE: NOW
PRODUCT & SYSTEMS DEVELOPMENT 64%
Manufacturing & Supply chain
26%
In-service 8% LAK 2%
1 Based on total H1 2016 GPS revenue
Capability-driven model creates growth opportunities
Systems
Structure
Engines
Electronic
Support
44%
26%
15%
4% 11%
20
Develop capability clusters to take proven business offers to new sectors/clients
Carry out selective external growth to foster use of new capabilities
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4 GROWTH DRIVERS GPS ON THE MOVE: GOING FORWARD
Focus on customers resource strategy
Benefit from supply panel reductions
Enhance size and scope of business with key accounts CLIENT
FOCUS CLIENT SUPPLY CHAIN
REGIONAL GROWTH
CAPABILITY- DRIVEN
GROWTH
1 Capitalise on clients’
globalization strategy to extend geographical footprint
Provide additional support to OEMs’ Tier1 supply chain
2
Target regional
growth to access new clients
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Organise key GPS capabilities around centres of expertise
Provide high value-added solutions based on expertise, tools and methodologies
Enhance competitiveness through combined use of onshore/offshore resources
Support regional business development through mobilisation of key experts & sales resources
DEVELOPMENT/IMPLEMENTATION OF CENTRES OF EXCELLENCE GPS ON THE MOVE: GOING FORWARD
CoE
Objectives
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REGIONAL GROWTH PRIORITIES
PRESENCE BUILD-UP
GPS ON THE MOVE: GOING FORWARD
REINFORCEMENT IN EUROPE
INITIAL FOOTHOLD
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EXTERNAL GROWTH: PRIORITIES GPS ON THE MOVE: GOING FORWARD
RECENTLY FUTURE ACQUISITIONS
To serve regional & capability-driven growth
strategy
Focus on acquiring expertise
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ORGANIC GROWTH
& • 5%-10% per year
in a market driven by technological and environmental innovations
• 5% per year fuelled by panel concentration, manufacturing & in-service support positioning
• 0%-5% per year driven by market share growth
EXTERNAL GROWTH
• Offer new capabilities to our Top 10 clients, i.e. “routes to market”, and serve their globalisation needs
• Serve regional growth priorities
MEDIUM TERM TARGETS GPS ON THE MOVE: GOING FORWARD
Objective of balancing revenue growth between organic & external growth
Enhanced EBIT margin thanks to: Sustained growth Improved business mix Efficiency gains for project delivery (lean management, CoEs, near/offshoring) & support functions
Aerospace
Automotive Industry
Transportation
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A SIGNIFICANT FOOTPRINT IN GERMANY GPS IN GERMANY
GmbH
AEROSPACE AUTOMOTIVE INDUSTRY & TRANSPORTATION
Stade
Wolfsburg
Köln
Rostock
Donauwörth Ingolstadt
Bremen
Stuttgart
München
Oberursel
Berlin
Hamburg
Support along the whole engineering lifecycle
Engineering partner for mechanics, electronics and software
Regional operations with global capabilities
Fully-equipped Assystem locations close to clients
€107m in revenue in 2015
Engineering solutions & products Aerospace Automotive Transportation Industry
Certifications EN ISO 9001 EN 9100
(aviation standard) ISO 27001
(information security management
1,000+ staff
AUTOMOTIVE
AEROSPACE
INDUSTRY & TRANSPORTATION
10%
40% 50%
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ASSYSTEM’S STRATEGY IN GERMANY (1/3)
GPS IN GERMANY
Ambition 2020: to double revenue and significantly enhance EBIT margin
Drivers Focus on all of our market sectors
Growth mainly led by Automotive and Industry & Transportation
Continuation of the business model transition in Aerospace from hired labour/LAK to fixed-price, outsourcing/offshore
Global solutions based on centres of excellence (CoE) that offer high organic growth opportunities (Cybersecurity, Test House, Embedded software, Industry 4.0)
Acceleration of growth: 1-2 planned acquisitions in Automotive and Industry (targeted individual size: €30m/€40m revenue)
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ASSYSTEM’S STRATEGY IN GERMANY (2/3)
GPS IN GERMANY
Client diversification
Export of capabilities & solutions from German CoE
Increase competitiveness:
Optimised use of resources (CoE, onshore/offshore)
P&L responsibility per region
One integrated operations & client management model
Execution levers
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ASSYSTEM’S STRATEGY IN GERMANY (3/3)
GPS IN GERMANY
GmbH
BY END OF H1 2017
Merger of legal entities in progress
EXPECTED BENEFITS: Higher market visibility & enhanced credibility Integration platform for future acquisitions Significant fixed-cost savings
AT PRESENT
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GLOBAL CAPABILITY TO BE REPLICATED FOR OTHER GPS OFFERINGS GPS IN GERMANY
Full-service contractor for 100% outsourced Hardware-in-the-Loop testing Providing testing infrastructure and services Testing all electronic systems from airbag to exhaust after treatment
Full implementation of Assystem’s best sourcing model: Client management and test-specification services based locally in Stuttgart Test management and services based at the Automotive Engineering Center in Romania
Functional testing of ECU network Development of test cases from system specification Regression testing of every ECU Software release Maturity report delivered after each test campaign
Fixed-price catalogue of services – “Pay-per-function” On-demand orders through a web-based ticket system
PROJECT
Case study - Testhouse for Daimler
SERVICES
BENEFITS
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SUPPORTING THE ENTIRE PRODUCT LIFE CYCLE GPS IN ACTION – CASE STUDIES
E-suspension Plastic equipment development Product cybersecurity Advance Driver Assistance Systems Derivative development & industrialisation
PRODUCT ENGINEERING
MANUFACTURING & PRODUCTION SUPPORT
IN-SERVICE & TESTING
CASE STUDIES
Engine control unit development Aerostructure work package development Large civil aircraft electrical system
installation FAL ground tests Life cycle cost reduction project
Optimisation of production facility efficiency
Independent Safety Assessment
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AUTOMOTIVE CAPABILITIES: 10 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES
ADVANCED DRIVER ASSISTANCE SYSTEMS
E-MOBILITY
ELECTRIC & WIRING
+ -
INFOTAINMENT, CONNECTIVITY & INSTRUMENTATION
POWERTRAIN CONTROL
| PROJECT MANAGEMENT | PROCESS DESIGN
TRIM & EQUIPMENT
BODY IN WHITE
CHASSIS
COMPLETE VEHICLE
SERVICE CENTRES (DIAGNOSTICS, TESTING
ETC.)
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AUTOMOTIVE (1/5) - E-SUSPENSION GPS IN ACTION – CASE STUDIES
Development & series delivery of electronic components Power electronic ECU for an electric, highly dynamic pump drive Advanced chassis system & controls
Component and controller development Safety engineering Hardware development Software development (based on Autosar SLP 10) Functional/engineering tests Industrialisation & transition to mass production
First A-samples delivered after 6 months Development of control algorithm for client pump noise cancelling
system
PROJECT
SERVICES
BENEFITS
Fixed price In-house project Duration: 3 years
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AUTOMOTIVE (2/5) - PLASTIC EQUIPMENT DEVELOPMENT GPS IN ACTION – CASE STUDIES
System: body trim equipment Duration: 1 year
Design & development of plastic injected equipment for new vehicles e.g. door panels, body side trims, bumpers, instrument panels
Volume, geometry and interface studies Initial style studies: product/process feasibility FMEA analysis Definition of RFQ product specifications Analysis of supplier proposals Prototyping Consulting & management for injection tooling development & installation Product development convergence through to mass production
Plastic equipment expertise from Plast Concept > 20 years Partnership with toolmakers and prototyping and testing facilities Cost efficiency: Nearshoring with AEC Lean expertise (engineering, supplier management)
PROJECT
SERVICES
BENEFITS
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AUTOMOTIVE (3/5) - PRODUCT CYBERSECURITY GPS IN ACTION – CASE STUDIES
Assessment of security & privacy protection policy Process management Architecture assessment and improvement Environment analysis/publications survey
Development of a security concept for inductive charging Threat analysis and specification of requirements Security concept development Security design coordination
Software development Security processes management Development of a secure inductive battery charging system Design of a security system for automotive info-/entertainment
Improved security & privacy processes, methods & tools Deeper cybersecurity know-how
PROJECT
SERVICES
BENEFITS
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AUTOMOTIVE (4/5) - SOLUTIONS FOR ADVANCED DRIVER ASSISTANCE SYSTEMS
GPS IN ACTION – CASE STUDIES
1 CTFL: Certified tester qualification
System: ADAS Phase: Platform development Duration: 2 years
Development of a front traffic alert software for an automotive OEM
System architecture Sensor qualification & component selection (radar sensor) Requirement & supplier management Process development Field testing
Development of an end-to-end function, including tests performed by certified personal (CTFL)
Effective function testing using Assystem tools & IP (TESTONA)1
PROJECT
SERVICES
BENEFITS
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AUTOMOTIVE (5/5) - PRODUCT DEVELOPMENT & INDUSTRIALISATION FOR A VEHICLE DERIVATIVE
GPS IN ACTION – CASE STUDIES
System: Body trim equipment Objective: Development & industrialisation of components Scope: > 60 engineers
Development & industrialisation of components for a vehicle derivative (2 sites) Structures: outer panels, reinforcements, outer/inner trims Roof opening system Rear bumper, soft & injected trims
Product design & development incl. digital mock-up & geometry convergence
Supplier management (toolmakers and Tier 1 suppliers): technical specifications, quality convergence & integration activities
Sub-system & performance tests
Product development & project management know-how Cost efficiency: Nearshoring with AEC Lean expertise (engineering, supplier management)
PROJECT
SERVICES
BENEFITS
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AEROSPACE CAPABILITIES: 10 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES
ELECTRIC & WIRING
+ -
INFOTAINMENT & CONNECTIVITY GROUND TESTS
PROPULSION SYSTEMS
AVIONIC SYSTEMS
PRIMARY STRUCTURES
EQUIPMENT
FAL SUPPORT
CABIN & INTERIORS
MANUFACTURING & SUPPLY CHAIN
| Project Management | Process Design
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AEROSPACE (1/5) - ENGINEERING: ENGINE CONTROL UNIT DEVELOPMENT
GPS IN ACTION – CASE STUDIES
1. Incl. Assystem IP
Fixed price In-house project Duration: 4 years
Development of a dual channel control unit for V12 Diesel aero engine (Full Authority Digital Engine Control (FADEC)), including prototyping
Full development of ECU (Electronic control unit) & test equipment1
EASA certification support
Fast prototyping (first delivery after 11 months) Design of Glow Plug Power Unit (GPPU)
PROJECT
SERVICES
BENEFITS
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AEROSPACE (2/5) - ENGINEERING: DEVELOPMENT OF AEROSTRUCTURE WORKPACKAGES
GPS IN ACTION – CASE STUDIES
Development of aerostructure workpackages for derivative programme
40+ FTE in France and Romania
Solution design 3D drawings Stress analysis
Strong level of expertise thanks to Assystem’s previous experience Cost efficiency thanks to nearshoring with AEC
PROJECT
SERVICES
BENEFITS
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AEROSPACE (3/5) - ENGINEERING: LARGE CIVIL AIRCRAFT ELECTRICAL SYSTEM INSTALLATION
GPS IN ACTION – CASE STUDIES
Management of design modifications for a large civil aircraft electrical system installation
100+ FTE in France, Germany & Romania
Solution design Modifications of 3D drawings Stress analysis
Strong level of expertise thanks to Assystem’s previous experience Cost efficiency thanks to nearshoring with AEC in Romania
PROJECT
SERVICES
BENEFITS
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AEROSPACE (4/5) - MANUFACTURING SUPPORT– FAL GROUND TESTS
GPS IN ACTION – CASE STUDIES
Large civil aircraft ground testing 100+ FTE dedicated to the Final Assembly Line (FAL) - Strong
interaction with global production flow
Designing test procedures Performing & monitoring ground tests
Strong level of expertise thanks Assystem’s previous experience Workforce adaptability in line with production ramp-up
requirements
PROJECT
SERVICES
BENEFITS
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AEROSPACE (5/5) - GAS TURBINES: LIFE CYCLE COST REDUCTION PROJECT
GPS IN ACTION – CASE STUDIES
Contract model: Fixed price Incentivised
Locations: UK India
Team size: 50 FTEs Duration: 4 years
Life Cycle Cost (LCC) reduction initiatives for engine OEM in the areas of product design, manufacturing & in-service
Proposing design modifications Modifying overhaul procedures Proposing changes to maintenance policy Carrying out commercial renegotiations
Strong level of engineering and commercial expertise (knowledge of client’s team & operating model)
Cost efficiency thanks to offshoring in India Flexible business model based on success fees (client’s LCC savings)
PROJECT
SERVICES
BENEFITS
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INDUSTRY CAPABILITIES: 7 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES
SYSTEMS ENGINEERING
TESTING SOLUTIONS
MACHINE CONTROL & AUTOMATION
SOLUTIONS
MANUFACTURING & SUPPLY CHAIN
SOLUTIONS
SMART DATA & NETWORKING SOLUTIONS
CYBERSECURITY SOLUTIONS
HMI SOLUTIONS
| Project management | Process design
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INDUSTRY – PRODUCTIVITY IMPROVEMENT ASSESSMENT VIA INDUSTRY 4.0 TECHNOLOGY
GPS IN ACTION – CASE STUDIES
Productivity & efficiency assessment at an industrial company’s production site using a combination of intelligent systems Concept analysis, modelling & set-up Technology evaluation
Use-case modelling (condition monitoring) Definition & management of requirements Software development: Data import and handling Modular network
Assystem’s high level of expertise 20+ years of experience in the industry sector Know-how in systems, software & HMI development
Integration of Industry 4.0 technologies into the condition monitoring system (Assystem is a member of “Platform Industry 4.0”)
PROJECT
SERVICES
BENEFITS
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TRANSPORTATION CAPABILITIES: 3 SYSTEMS & SOLUTIONS GPS IN ACTION – CASE STUDIES
Rolling stock Train systems Structure (mechanical & electrical) Interiors TCMS & traction Manufacturing engineering RAMS studies Independent Safety Assessment
Signalling Mainline (e.g. ERTMS L1&2) Mass Transit (e.g. CBTC) Interlocking Traffic control RAMS studies Independent Safety Assessment
In-service Integrated logistics support Real-time data collection and
analysis using smart/big data Maintenance & operations
optimisation System upgrades
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TRANSPORTATION - INDEPENDENT SAFETY ASSESSMENT GPS IN ACTION – CASE STUDIES
Objective: Safety assessment
Domain: Signalling Phase: Acceptance
Duration: 3 years
Independent Safety Assessment (ISA) of 2 highly critical generic signalling products
Safety assessment carried out by specialised and certified personnel for: Radio Block Centre (RBC) European Vital Computer (EVC)
PROJECT
SERVICES
BENEFITS
Minimum rework activities after assessment process thanks to: The assessment team’s signalling expertise Assystem’s “client first” culture
Workforce and deliverables adaptability as a result of Assystem’s flexibility