Necessary but not sufficientThomas W. Schmidt, Head of Operational Excellence and IS, ABB Power Products Division

PLM in context of Innovation Excellence

© ABB GroupApril 22, 2023 | Slide 2

A global leader in power and automation technologies

135,000 employees in about 100 countries

$38 billion in revenue (2011) Formed in 1988 merger of Swiss and

Swedish engineering companies Predecessors founded in 1883 and

1891 Publicly owned company with head

office in Switzerland

Power and productivity for a better worldTM

© ABB GroupApril 22, 2023 | Slide 3

How ABB is organized Five global divisions

Power Products

Power Systems

Discrete Automation and Motion

Process Automation

$10.3 billion35,000

employees

$7.7 billion19,500

employees

$8.4 billion27,500

employees

$7.8 billion28,500

employees(2011 revenues, consolidated)

Low Voltage Products

$5.0 billion21,000

employees

Electricals, automation, controls and instrumentation for power generation and industrial processes

Power transmission Distribution solutions Low-voltage products

Motors and drives Intelligent building systems Robots and robot systems Services to improve customers

productivity and reliability

ABB’s portfolio covers:

© ABB GroupApril 22, 2023 | Slide 4

Consequences and challenges of a global presenceThe Local – Global Dilemma

High variety of standards (IEC, ANSI, GB, GOST, etc.) High variety of customer specifics

Control & protection philosophy Wiring schemas Grid topology

Dem

and

for g

loba

l bus

ines

s ap

proa

ch/in

tegr

atio

nLo

whi

gh

Low

HighDemand for market/country specific business approach

International Organizations

Multinational Organizations

(Old ABB)

Transnational Organizations

Opportunities due to localization and specific added value

Opportunities due to

leveraged synergies

© ABB GroupApril 22, 2023 | Slide 5

Pre-requisite: Technology PlatformsExample: Surge Arresters

Loop design

Common technology

Arrester Class

Internal Design

Housings

LOVOS

ZnO discs

POLIM PEXLIM PEXLINKAZ

© ABB GroupApril 22, 2023 | Slide 6

Pre-requisite: Portfolio Management / Focus FactoryExample: MV Air Insulated Switchgear, Unigear

2001

2002

200320042005

Prod

ucts

18

10

111

Part

s

80‘000

45‘000

5‘0005‘0005‘000

Fact

orie

s

47

22

12129

Platform developmentFunctionality implementationPhase in of global platform

Product substitution

Designed byOne team of 27 engineers in 7 different countries …

…sold in more than 35 different markets

© ABB GroupApril 22, 2023 | Slide 7

Pre-requisite: Common Processes & ApplicationsExample: CommonPLM – Create, Collaborate & Control

Manual update wastes timeCollaboration not possible

One set of dataUpdates of global design are visibleCollaborative engineering possible

Global change management

Localadaptation visible

PLM

TECHNOLOGY TRANSFER

TECHNOLOGY TRANSFER

LTC

TC 1

TC x

Yesterday

LTC

TC 1

TC x

Today

© ABB GroupApril 22, 2023 | Slide 8

Pre-requisite: Operational Excellence in All Functions

Leverage Emerging Countries & Global Purchasing PowerState of the art material management processes

Supply ChainExcellence

Technology Leadership and Time to MarketSustainable product life cycle processes

R & DExcellence

Common manufacturing processes per product lineState of the art operational processes

OperationalExcellence

SalesExcellence

Leverage entire product portfolio in all markets & channelsDemand profitability by customer/channel/product line

Finance Efficiency, Transparency and ComplianceLeadership, Talented People, Health & Safety

ManagementExcellence

Simplicity

Speed

Quality

Integrity

Respect

Determination