© Siemens AG 2011. All rights reserved
MIT Manufacturing Summit
US Manufacturing impressions from a Global conglomerate
Cambridge, October 2011
Page 2 © Siemens AG 2011. All rights reserved
Innovation has been making Siemens strong for over 160 years
Outstanding innovation and sales development of Siemens AG, since 1847
First pointertelegraph
World's first pacemaker
from Siemens
Digital EWSDtelephoneexchange
W. v. Siemens develops Dynamo
Magnetom
"Synapse 1"
"Eurosprinter"
First Simatic
ICE3
Sensor "Fingertip"
Electrictrain
First Siemensradio
receiver
First trafficlight
ISDN"HICOM"
First GSMmobile phone with color display
First 256Mbit chip
18471847 18791879 '801924 19261926 19581958 19591959 19741974 '03'0318661866 19731973 '81 '82 '84 …'92
Start of productionof highly integrated
LSI circuits
64 kbitstorage
A company like Siemens can only be lastingly successful with technologically superior products. We must constantly produce innovations that give us an advantage over the competition.
Heinrich von Pierer,shareholders' meeting Jan 23, 2003
«
»
Sales, in logarithmicscale
Overview of Siemens origin
& growth
Page 3 © Siemens AG 2011. All rights reserved
Siemens has 4 Sectors, with 60,000 employees and $25 Billion in revenue in the US during FY10
Siemens Sector & Division setup, with employees & revenue (USD) for FY!0
Industry
Osram
Medium & Low Voltage
Industry Automation
Drive Technologies
Customer Services
Energy
Power Transmission
Fossil Power Generation
Renewable Energy
Oil & Gas
Infrastructure & Cities
Building TechnologiesImaging & IT
Workflow & Solutions
Diagnostics
Healthcare
Smart Grid
Mobility
Key FY10 informationGlobal Employees: 405,000US Employees: 60,000
Global Revenue: $104 BillionUS Revenue: $25 Billion
Overview of Siemens businesses
& size
Page 4 © Siemens AG 2011. All rights reserved
Current challenges for Siemens in the US
Identifying candidates & hiring for open positions
Remaining cost competitive
Ensuring continued innovations in both products & mfg processes
A review of Siemens Mfg landscape, shows opportunities & challenges exist in the US
US manufacturing overview
~3,000 open positions in US Majority are manufacturing related
Average potential salary ~$89,000
Refocus on US manufacturing
Exchange rates helping to maintain competitive US costs / investments
Perception that intellectual property needs to be preserved in US & EU
United States
Nearly 100 manufacturing sites across US All four Sectors & all of the divisions have US
manufacturing facilities
Locations in all 50 states
Sites originate from both investment & acquisition Limited return to US once off-shoring occurs
Germany
Majority of manufacturing capacity with continually heavy investments in automation
Off-shoring generally for non-critical components
Rest of World, mainly emerging markets
Traditional focus on low-cost, low-value mfg
Recent shift to local-for-local & local-for-global
Current opportunities for Siemens in the USSiemens Manufacturing Overview
US mfg overview& comparison
Page 5 © Siemens AG 2011. All rights reserved
Examples of global mfg strategies, resulting in an expansion of US-based mfg value-add
Global manufacturing strategies followed a process to obtain results
Identify required core competencies Generally based on market
differentiators
Can include considerations for IP & trade secrets
Evaluate existing capabilities & future demand
Determine location & workforce to deliver core competencies
Develop a detailed business case: Rationale for changes
Financial analysis (NPV, cashflow, P&L impact)
Project timeline
Risk assessment & mitigations
Energy Sector
Workshop footprint strategy
Energy Impacts
Opened a new site in the US Based on a manufacturing
innovation
Enhanced product portfolio, while reducing costs
Industry Sector
EBIT improvement & manufacturing best practices
Industry Impacts
Shifted high value-add work to US for customized products Increased focus on high margin
customized solutions
Low skill & high-run-rate work remained in Mexico facility
ResultsProcess & evaluationManufacturing strategies
Mfg project examples
that I led
Page 6 © Siemens AG 2011. All rights reserved
Diagnosis of a disorder (e.g. infection, cancer, …)
Localization of disease (e.g. stenosis, tumor, …)
Reveal multi-morbidities
Genetic pre-disposition Patient metabolism / immune
reactions Molecular specificities of
the disease Stratification for treatment
Assessment of similar cases Structured outcome analysis Decision support systems Standards of Care
Imaging, Diagnostics Molecular applications Healthcare IT
Siemens’ Healthcare portfolio designed to enhance patient outcomes from diagnosis to treatment
Understand the patient‘s disease
Understand the patient‘s biology
Leverage state-of-the-art databases
Siemens Healthcare portfolio overview
Current area ofresponsibility
Page 7 © Siemens AG 2011. All rights reserved
Increasing demand for healthcare services Diverse & scattered customer base
Growing & aging population Emerging rural healthcare High growth in emerging markets
Market trends Need for improved healthcare
Trends in Healthcare require improvements in innovation & manufacturing
Cost pressure (e.g. Deficit Reduction Act)
Financing problems New structure of competitors
Disease orientation Healthcare IT
Innovations needed to drive customer & Siemens cost reductions
Improved processes & workflows
New applications & clinical pathways Flexible and customer-specific
IT solutions
Healthcare market trends with needed responses and statement from Eric Spiegel
Trends in my area focus on innovation
& manufacturing
Page 8 © Siemens AG 2011. All rights reserved
Closing statement – invest in education & training
“The old jobs are not coming back. We need to invest in education and training to get people prepared
to fill these high-skilled, high-wage jobs of the future”
– Eric Spiegel, president & CEO of Siemens Corp (NAFTA)
Closing statement as said
by CEO of NA