PELC 2005

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GE Advanced Materials Outsourcing Process and
Document handling of the Bergen op Zoom Plant
Engineering Department Jan Hellings
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A global and diversified technology, media, and
financial services company.
Commercial Finance
Energy
Transportation
Healthcare
NBC Universal
Consumer Finance
Infrastructure
Consumer Industrial
Advanced Materials
Insurance Solutions
Equipment Services
3
A company with a strong track record of
performance for all stakeholders
Automotive Plastics Polymershapes Quartz Sealants
Adhesives Silicones Specialty Film Sheet
2003 Revenues (USD billions)

• Advanced Materials
• Commercial Finance
• Consumer and Industrial
• Consumer Finance
• Equipment Services
• Energy
• Healthcare
• Infrastructure
• Insurance
• NBC-Universal
• Transportation
• Total GE Consolidated Revenue

7.0 20.8 12.8 12.8 4.4 19.0 10.1 3.0 26.2 6.8 13.5
134.1
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A company whose actions and values go hand-in-hand
Actions
Values
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Our Company has Global Reach 15,000 Employees
in 79 Locations in 21 Countries
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4
2
1
4
1
2
31
1
2
6
2
4
2
3
2
2
1
3
1
1
Locations worldwide, includes manufacturing,
technology and joint-venture sites
79
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GE Advanced Materials BOZ

• 6 Compounding Plants
• Noryl
• Lexan
• FCP
• Lexan-sheet
• Slilicones
• Azdel

• 6 Chemical Plants
• 2 BPA Plants
• PC Resin
• Phosgene Plant
• Chlorine Plant
• PPO Plant

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The need
TOP down directive

• Problem definition
• We had to hit our indirect spend and headcount
  targets in a fast and effective way.
• We created a leaner organization meaning 67
  reduction of our GE-AM engineering headcount (9
  to 3 FTEs) and all engineering freelancers
  (ca.40FTEs)
• This had a direct impact on how we can execute
  projects.

GE-AM personnel focus on core activities Cost
Variable with demand Optimal use of external
expertise Respecting company regulation and
legislation
Change Systems and Structures to Maintain
Performance
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Finished good
Raw mat.
Production
Technical Support Organization

• Content of Agreement with
• Engineering Service Provider
• Project management risk control full cycle
• in Time, Cost and Quality
• Engineering services
• Procurement
• Specs and Standards
• Document Control
• Consultancy
• Environmental, health, Safety Risk
• Maintenance

• Strategy
• Safe reliable Operation
• Cost variable with demand
• Optimize usage of external expertise
• GE-AM-Focus on core activities
• One team One approach, Synergy
• Compliance to Asset (psm)
• integrity legislation

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The Model
Described in an outline strategy

• Selection criteria
• Flexibility / Ability to adopt GE culture .
• Understand the Vision/Strategy
• Price
• Size of Organization
• Global Player
• Local Presence
• EHS Performance
• Management Commitment
• Level of knowledge GE facility
• Both Services Project management
• Proven capability, benchmarked

Engineering Service Contract
Project Identification
Scope Definition
Operation Close-Out
Project Deliverables
T 3
T 4
T 5
T6
DFSS Checkpoints
Project Identification
Scope Definition
Conceptual Design
Basic Engineering
EPC Comm
Operation Close-Out
T1
T2
T3
T4
T5
T6
GE-AM DFSS process owned by GE- project owner
GE-AM selected
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DFSS approach as a Tool
Big Ys External CTQs Growth
Customer satisfaction EHS Employee
satisfaction Cost
Virtual defect free Improvement Meeting all CTQs
Project Identification
Scope Definition
Conceptual Design
EPC Comm.
Operation Close-Out
Basic Engineering
Aker Kvaerner
GE
GE
Project Specification Work Order
CDP GEP Purchase order
Commis- sioning Pinkcard
BEP Release for Construction
Close-Out Blue card
E-MOC
GAP 20
Sourcing
GATS/WtW
DFSS
1 Process for all Projects
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DFSS approach as a Tool


CDP
BEP
EPC
GEPE drives, Service Provider Powers
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GE-AM systems
GE-AM project owner
Wing to Wing (Investment system)
Aker Kvaerner project owner
Aker Kvaerner acting as if they are GE-AM
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Document Management between GE-AM and Aker
Kvaerner
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What is system contracting
The next step
System Contractor
Basic Engineering
Conceptual engineering
GE
Basic Engineering
Engineering Procurement Construction
Conceptual engineering
GE
Engineering Procurement Construction
GE
Construction E/I
Construction MP
System Contractor
GE
GE
Construction MP
Construction E/I
Construction P/A
Construction Support
Construction P/A
Construction Support
GE
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Success is all about timing.
Good Plan Strategy