Martijn Hesp, management controller bij VDL Nedcar en Stephan de Wit van Finext vertellen hoe deze Limburgse bouwer van BMW’s Mini-coopers zich los worstelde uit de wirwar van spreadsheets en samen met Finext op zoek ging naar een stabiele betrouwbare planningsoplossing.

1. Martijn Hesp
16 nov 2016
Planning & Forecasting at VDL Nedcar

2. Agenda
 VDL information
 Background Budget Tool
 Tool Selection
 Implementation
 Project impact
 Realization
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3. 1. Subcontracting
 Metal working
 Mechatronic systems and system supply
 Plastics processing
 Surface treatment
3
 Coaches
 Public transport buses
 High-quality Public Transport Systems
 Mini & midi buses
 Chassis modules
 Second-hand buses
 Parts & services
2. Buses & coaches
 Suspension systems
 Production automation systems
 Systems for the agricultural sector
 Cigar-making and packaging machines
 Systems for the industrial sector
 Heat exchangers
 Sunbeds and roof boxes
 Container handling systems
3. Finished products
4. Car assembly
 Production of passenger cars for third parties
 Production of press parts for third parties
VDL Nedcar is fully owned by VDL Groep B.V.
VDL Groep comprises four divisions
Presentation VDL Nedcar16 november 2016

4. VDL Nedcar is an experienced Dutch contract manufacturer with
state-of-the-art facilities and a production capacity of ~330 K
VDL NEDCAR AT A GLANCE
• Experienced Dutch automotive contract
manufacturer
• Long-term relationships with renowned
European and Japanese OEMs
• Fully owned by VDL Groep
• Employing ~ 4.500 automotive
professionals
• Current technical production capacity (paint
shop)
– 220,000 cars p.a. (2 shifts)
– 330,000 cars p.a. (3 shifts)
• Total # of cars produced: > 4.7 million cars in
47 years
CAPACITYCOMPANY
FACILITIES
• State-of-the-art equipment in 4 shops
– Press: 2 advanced CCFT and 6 highly
efficient traditional press lines
– Body: highly automated (>1200 robots)
– Paint: water-based paint process
– Final assembly: 1 assembly line
• Surface of site: ~ 930,000 m2
• Surface of built area: ~335,000 m2
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5. VDL Nedcar has a convincing track record of manufacturing passenger
cars for renowned European & Japanese automotive OEMs
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6. VDL Nedcar has state-of-the-art passenger vehicle production
facilities and equipment in four different shops
OVERVIEW OF VDL NEDCAR FACILITIES
• Equipment: 6 tandem press lines
• 2 CCFT1) presses
• Capacity: 4,747 hours (in 3 shifts)
• Surface: 70,000 m2
• Equipment:~ 1200 robots
• Capacity: ~ 47 cars/hour
• Surface: 78,500 m2
• Equipment: PT-ED/ topcoat and WAX line
• Capacity: ~ 61 cars/hour
• Surface: 112,000 m2
• Equipment:~19 robots
• Capacity: ~ 58 cars/hour (main line)
1 Press shop
Body shop2
3
4Final assembly shop
Paint shop
1) Crossbar Cup Feed Transfer
6
Logis
tics
Presentation VDL Nedcar16 november 2016

7. VDL Nedcar recent Facts & Figures
 Independent Vehicle Contract Manufacturer (with BMW as first customer)
 Car production for BMW of 3 models:
1. MINI Hatch SOP 07-2014
2. MINI Cabrio SOP 11-2015
3. MINI Countryman SOP 11-2016
 Press parts production for DAF
 Revenue 2015: 912 mln
 Revenue 2016 H1: 673 mln
 5000 employees in 2017
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8. VDL Nedcar Planning and Control Cycle
 Controlling dept. consists of 7 employees
■ 1 manager controlling => activities include budgetting
■ 4 cost controllers => activities include budgetting
■ 1 costing controller => activities do not include budgetting
■ 1 investment controller => activities do not include budgetting
 Process
■ Initial Budget (1 year forward)
■ Monthly Budget updates (remaining months forward)
■ Month End Closing (realisation actuals vs budget)
 Key drivers
■ FTE’s / Salaries
■ Car models (different models mean different sales/cost)
■ Car volume (for sales & costs)
■ Differentiation between production / project costs
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9. Background Budget Tools
 Volvo / Mitsubishi era 1999-2001: Hyperion Pillar
 Mitsubishi era 2001-2012: Hyperion Pillar
 BMW era 2013-2015: Excel
 BMW era 2016-: Hyperion Planning
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10. Tool selection: Restrictions Excel budget model
 Complex model without documentation
 High chance of errors (links, formula’s, structure),
 Manual masterdata management
 Limited possibilities (comparisons, what-if analyses, reports, data extraction)
 No cross-sections of the data
 Conclusion:
Budget data management and reporting capabilities must be improved through
using a real budget model with a database.
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11. Tool selection: Excel vs Pillar
 Difficult to convert complex BMW contract with many Result Area’s to a
budget in Hyperion Pillar.
 Time constraint to process organizational changes in Hyperion Pillar.
 A very short term solution was needed, due to time constraints and dept
capacity.
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12. Maturity move
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13. Project Key Points
 Support for easy budget uploads to SAP
 Support for interfacing SAP masterdata to Hyperion (GL, CC, PC)
 Creation of an integral P&L including alle costs on CC and profits on PC.
 Differentiation between production and different projects (seperate P&L)
 FTE cost calculation based on different FTEs per:
■ Cost Centre
■ FTE category
■ Type of employment
 FTE cost allocation to projects
 FTE cost calculation of extraordinary production days
 Cost on combination GL – CC can be result of calculation, fixed input, or both.
 Adding comments to the input of controllers for explaining changes
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14. Tool selection: rating of available tools
Shortlist:
 Oracle Hyperion
 IBM Cognos
 SAP BPC
Rated key area’s:
 Functionality
 Flexibility
 Cost
 Ease and duration of implementation
 Ease and cost of maintenance
 Security
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15. Tool selection: Oracle Hyperion Planning
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On-premise variant.
Main selection reasons:
 Functionality
 Flexibility
 Usability
■ Excel integration
■ Ease of maintaining the tool inhouse

16. Implementation
 Coaching approach
■ 1 member from the VDL Nedcar controlling was project manager and
responsible for the implementation.
■ 1 member of the VDL Nedcar IT was responsible for the link between
controlling and IT (installing on premise, effects on SAP, backup-recovery)
 Lessons Learned:
■ 100% involvement from controlling/end user in implementation:
 eases tool adoption
 eases changes to tool when Finext support has ended
■ Backup & restore procedure needed during implementation
■ Difficult to get development for testing inline with production.
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17. Project Impact
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 Project impact on the organization
■ Project duration: 10 months (not full time)
■ 1 member of controlling project support for 3 days per week for 10 months
(± 1.000 hours)
■ Support from Finext ± 390 hours
 Project impact on IT
■ Minimal impact on IT for:
 support during installation on premise (5 days)
 support for backup-recovery procedure (5 days)

18. Project Planning
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Deliverables
Installatie hardware & software
Design
Prototyping
Development (metadata, forms, tasklists, bus. rules, reports.
Interfacing
Validation
Implementation
Training eindgebruikers
Afronding overige zaken
Oplevering / Eind implementatie per 1-9-2016
After Live Support
Dec
2016
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

19. Realization (benefits of using Hyperion)
 Previously 1 budget controller who gathered and executed all
monthly changes for all controllers.
=> less involvement and knowledge from other controllers
Now more efficiency due to actively changing/reporting and
controlling the budget at any time for all controllers.
 Data flexibility; data can be presented in all possible cross sections
 Reporting possibilities
 Masterdata control through SAP interface
 Long term budgetting/forecasting possible (>10 year)
 Back-up and recover possibilities.
 Back-up budget controller more easy to educate than in excel.
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20. Plans for the future in Hyperion
 Forecasting
 Liquidity budget/forecast
 Balance sheet
 Balance sheet + link liquidity budget + link WIP projects
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21. Drive safe, but…. have fun on the road
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23. Hyperion at VDL - Tasklist
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24. Hyperion at VDL – Workforce planning
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25. Hyperion at VDL – Business Rules
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26. Hyperion at VDL – Smart View
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27. Hyperion at VDL – (process) Reporting
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