5. From blacksmith to global wind leader
5
Vestas’ journey
1898:
Blacksmith H.S.
Hansen arrives in
Lem
1945:
VEstjysk
STaalteknik A/S
becomes VESTAS
1979:
First turbine after
agricultural
vehicles, etc.
1987:
Vestas
Wind Systems
A/S
1991:
Turbine no.
1000
2013:
Anders Runevad,
CEO
2004:
Merger: NEG
Micon & Vestas
2012:
50 Gigawatt
milestone.
2014:
Profitable Growth for
Vestas & MHI Vestas
founded
2010:
Wind. It means
the world to us.
6. Vestas in brief
6
The only global wind energy company
We employ around
19,600 people worldwide
and have more than 30
years of experience with
wind energy
19,600+
We monitor around
28,000 turbines, or more
than 52,300 MW, day
and night and the data is
used for efficient service
planning and pre-
emptive maintenance
28,000+
We have more than
53,000 turbines or more
than 66 GW cumulative
installed capacity in 73
countries worldwide
spanning six continents
53,000+
Vestas revenue for
the full year 2014 was
EUR 6.9 billion
€ 6.9b
7. Vestas has a unique global reach in sales, installation and manufacturing
Global headquarters
Sales & Service
Production
Research
Vestas locations around the world
7
8. Installed*
19913MW
Installed*
6179MW
Installed*
9313MW
The industry’s most proven technology
8
2 platforms ensure wide range of variants based on the same reliable turbine technology
2 MW PLATFORM 3 MW PLATFORM OTHER 3 MW TURBINES
YEAR OF
PROTOTYPE
2004 2009 2014 2014* 2013 2013 2013 2002 2012
PRODUCT-
CAPACITY
V90-1.8MW
V90-2.0MW
V100-1.8MW
V100-2.0MW
V110-2.0MW V105-3.3MW V112-3.3MW** V117-3.3MW V126-3.3MW V90-3.0MW V100-2.6MW
*As per December 31st 2014
** Including V112-3.0MW
9. What Vestas offers
9
Our business spans across both turbines and services
WIND
SOLUTIONS
SITE
SOLUTIONS
Expertise built from
30 years of wind
industry experience
11. Project Execution Model - Introduction
11
Governing Principles
Project Organization
Roles &
Responsibilities
Governance
Reporting & Escalation
Supporting Tools &
Systems
Terminology & Definitions
Project Execution Model
Vestas Way to Market
Issue Gate 1
Presentation
Have Stage 2
Kick Off
Definition of
handover criterias
between Platform
Management and
Service Engineering
Align Milestone
Plan
Release Project
Management
Plan
Consolidate
planning and
scoping activities
Gate Count
Down G2
Lessons
Learned
Release Project
Management
Plan
Gate Count
Down G3
Lessons
Learned
Have Stage 4 Kick
Off
Update
Communication
Plan
Consolidate
Project Budget
Align Milestone
Plan
Release Project
Management
Plan
Consolidate
planning and
scoping
activities
Gate Count
Down G4
Lessons
Learned
Detail Project
Plan Stage 6
Request
generic
resource needs
Review and
baseline Plan
Release Project
Management
Plan
Gate Count
Down G5
Lessons
Learned
Request
generic
resource needs
Consolidate
Project Budget
Consolidate
planning and
scoping
activities
Gate Count
Down G6
Lessons
Learned
Manage Project
Scope Changes
Handover
between
Platform
Management
and Service
Engineering
Gate Count
Down G7
Project Closure
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Evaluate full
Project Risk
Profile (Pre G2)
Evaluate full
Project Risk
Profile
Evaluate and
escallate sub
project risks
Evaluate full
Project Risk
Profile
Evaluate and
escallate sub
project risks
Evaluate full
Project Risk
Profile
Not Started Not Started Not Started Not Started Not Started Not Started
Establish Cost
Tracking Setup
Cost Target Setting Cost Estimation Cost
Optimisation
Cost Report Cost Report Cost Report
Not Started Not Started Not Started Not Started Not Started Not Started Not Started
CIM case
Evaluation
Quality
Assurance Plan
PPAP Scope &
Plan
Prototype
Control Plan
Inspection Plan
for Prototypes
MSA Execution
& Collection of
Results
PPAP Validation
of Parts &
Documentation
Finalize PPAP
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
SBU Selling
Guidelines for
Early
Engagement
Draft Go-To-
Market Plan
Define
Technical
Market
Documentation
Draft Marketing and
Communications
Plan
Market
Documentation
Plan Locked
Early Selling
Documentation
Package
Complete
Performance
specification
Documentation
Package
Complete
Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Make early
booking
request in GTRS
for Product
Tests
Create Product
Verification
Procedure
(DVPR)
Make early
booking
request in GTRS
for Test of
System
Create
Component
Verification
Plan (DVPL)
Do early
booking
request for
Component
tests in GTRS
Create System
Verification
Procedures
(DVPR)
Reliability
report
Identify test
centres for
Component
test
Execute
Component tests
inside Vestas
Execute
Component
tests outside
Vestas
Write test
report (Product)
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Manufacturing
requirement
definition
Alignment of
Training
Expectations
Production
Planning on MS
Items
Materials and
Production
Master data for
prototype
Production
Basis for
Prototype
Production
Produce
component
prototype
Prepare for
production
training
0-series
production
layout and
process flow
Phase out of old
items
Production
Basis for Serial
Production
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Identify Second
source for
items
Design for
Sourcing
guideline
released (Generic
& project specific)
Should cost
analysis
conducted
Investment plan
and budget for tools
& equipment at
suppliers updated
Preferred
supplier list
Should cost
analysis
conducted
Not Started Not Started Not Started Not Started Not Started Not Started
Impact analysis
for maintenance
and uptower
repair
Update torque
setting diagram
Creation of
Service
Inspection
Instruction (SII)
and Service
Inspection
Form(SIF) ready
for prototype
Application on
material
master for
spare parts
Finalize service
tasklist based
on operations
Finalize
Lubrication
Chart
Create
recommended
spare part list
Prepare
training
equipment
Update process
and process
risk
assessment
(PFMEA)
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Impact analysis
for installation
Process design
for installation
Process risk
assessment for
installation
(PFMEA) ready
for prototype
installation
Installation
sequence
guide, baseline
document and
mechanical
completion
check list ready
for prototype
Training outline Balance of
Plant
Development of
training
material
Preparation for
development of
training
equipment
Training
equipment
production
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Transport
requirement
definition
Transport
business case
Prototype
transport
solutions
Transport,
preservation and
storage
documentation
ready for
prototype
Transport
equipment SAT
Update price
tools +
transport
equipment
configurator
Not Started Not Started Not Started Not Started Not Started Not Started
Integrated Product
and process Design
and optimise
Verification & Validation
Requirement Management
Transport, Installation
and Commissioning
readiness
Maintenance and
Repair Operations
readiness and ramp
up
Production Readiness
and Ramp up
Project Management
Cost Management
Project Management
Risk Management
Quality, Safety &
Environment
Commercial launch
Quality
Product Management,
Sales and Marketing
Transport proces
Maintenance
Installation and Commisioning
Design and implementation of
processes for Manufacturing
and Assembly
Design and deploy the supply
chain network
Stage 2 - Scoping, Planning & Product Design Stage 3 - System Design and Critical Process Design Stage 4 - Detailed Product & Process Design & Verification Stage 5 - Industrialisation & Prototype Stage 6 - Zero Series
Stage 7 - Serial Production and
Product Validation
Stage 1 - Idea Development G1 G2 G3 G4 G5 G6 G7
PM03 PM29 PM27 PM11 PM12 PM26 PM13 PM14 PM59 PM16 PM63 PM31 PM36 PM48 PM56 PM60 PM73 PM22 PM64 PM41 PM45 PM53 PM61 PM23 PM65 PM46 PM50 PM75 PM24 PM67 PM71 PM28 PM25 PM21
RI01 RI02 RI04 RI06 RI10 RI08
BC01 BC02 BC04 BC05 BC06 BC20 BC22
QU02 QU10 QU08 QU22 QU23
CL03CL06 CL10 CL17
VV04VV06 VV07 VV31VV08VV09 VV11 VV16 VV17 VV18 VV21
DI02 DI06 DI09 DI07 DI16 DI26
SC05 SC06 SC09 SC15 SC11 SC24
MR04 MR33 MR29 MR24 MR18 MR31
IC05 IC12 IC13 IC15
TP02 TP06 TP08 TP12
DI17
QU25
IC01
DI33
TP13
DI43
TP15
DI44
QU07QU29
IC36
MR07MR03
IC27 IC28
MR40
IC29
CL24 CL34 CL35
12. Vestas Way to Market
A standard project stage-gate model
Issue Gate 1
Presentation
Have Stage 2
Kick Off
Definition of
handover criterias
between Platform
Management and
Service Engineering
Align Milestone
Plan
Release Project
Management
Plan
Consolidate
planning and
scoping activities
Gate Count
Down G2
Lessons
Learned
Release Project
Management
Plan
Gate Count
Down G3
Lessons
Learned
Have Stage 4 Kick
Off
Update
Communication
Plan
Consolidate
Project Budget
Align Milestone
Plan
Release Project
Management
Plan
Consolidate
planning and
scoping
activities
Gate Count
Down G4
Lessons
Learned
Detail Project
Plan Stage 6
Request
generic
resource needs
Review and
baseline Plan
Release Project
Management
Plan
Gate Count
Down G5
Lessons
Learned
Request
generic
resource needs
Consolidate
Project Budget
Consolidate
planning and
scoping
activities
Gate Count
Down G6
Lessons
Learned
Manage Project
Scope Changes
Handover
between
Platform
Management
and Service
Engineering
Gate Count
Down G7
Project Closure
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Evaluate full
Project Risk
Profile (Pre G2)
Evaluate full
Project Risk
Profile
Evaluate and
escallate sub
project risks
Evaluate full
Project Risk
Profile
Evaluate and
escallate sub
project risks
Evaluate full
Project Risk
Profile
Not Started Not Started Not Started Not Started Not Started Not Started
Establish Cost
Tracking Setup
Cost Target Setting Cost Estimation Cost
Optimisation
Cost Report Cost Report Cost Report
Not Started Not Started Not Started Not Started Not Started Not Started Not Started
CIM case
Evaluation
Quality
Assurance Plan
PPAP Scope &
Plan
Prototype
Control Plan
Inspection Plan
for Prototypes
MSA Execution
& Collection of
Results
PPAP Validation
of Parts &
Documentation
Finalize PPAP
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
SBU Selling
Guidelines for
Early
Engagement
Draft Go-To-
Market Plan
Define
Technical
Market
Documentation
Draft Marketing and
Communications
Plan
Market
Documentation
Plan Locked
Early Selling
Documentation
Package
Complete
Performance
specification
Documentation
Package
Complete
Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Make early
booking
request in GTRS
for Product
Tests
Create Product
Verification
Procedure
(DVPR)
Make early
booking
request in GTRS
for Test of
System
Create
Component
Verification
Plan (DVPL)
Do early
booking
request for
Component
tests in GTRS
Create System
Verification
Procedures
(DVPR)
Reliability
report
Identify test
centres for
Component
test
Execute
Component tests
inside Vestas
Execute
Component
tests outside
Vestas
Write test
report (Product)
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Manufacturing
requirement
definition
Alignment of
Training
Expectations
Production
Planning on MS
Items
Materials and
Production
Master data for
prototype
Production
Basis for
Prototype
Production
Produce
component
prototype
Prepare for
production
training
0-series
production
layout and
process flow
Phase out of old
items
Production
Basis for Serial
Production
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Identify Second
source for
items
Design for
Sourcing
guideline
released (Generic
& project specific)
Should cost
analysis
conducted
Investment plan
and budget for tools
& equipment at
suppliers updated
Preferred
supplier list
Should cost
analysis
conducted
Not Started Not Started Not Started Not Started Not Started Not Started
Impact analysis
for maintenance
and uptower
repair
Update torque
setting diagram
Creation of
Service
Inspection
Instruction (SII)
and Service
Inspection
Form(SIF) ready
for prototype
Application on
material
master for
spare parts
Finalize service
tasklist based
on operations
Finalize
Lubrication
Chart
Create
recommended
spare part list
Prepare
training
equipment
Update process
and process
risk
assessment
(PFMEA)
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Impact analysis
for installation
Process design
for installation
Process risk
assessment for
installation
(PFMEA) ready
for prototype
installation
Installation
sequence
guide, baseline
document and
mechanical
completion
check list ready
for prototype
Training outline Balance of
Plant
Development of
training
material
Preparation for
development of
training
equipment
Training
equipment
production
Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started Not Started
Transport
requirement
definition
Transport
business case
Prototype
transport
solutions
Transport,
preservation and
storage
documentation
ready for
prototype
Transport
equipment SAT
Update price
tools +
transport
equipment
configurator
Not Started Not Started Not Started Not Started Not Started Not Started
Integrated Product
and process Design
and optimise
Verification & Validation
Requirement Management
Transport, Installation
and Commissioning
readiness
Maintenance and
Repair Operations
readiness and ramp
up
Production Readiness
and Ramp up
Project Management
Cost Management
Project Management
Risk Management
Quality, Safety &
Environment
Commercial launch
Quality
Product Management,
Sales and Marketing
Transport proces
Maintenance
Installation and Commisioning
Design and implementation of
processes for Manufacturing
and Assembly
Design and deploy the supply
chain network
Stage 2 - Scoping, Planning & Product Design Stage 3 - System Design and Critical Process Design Stage 4 - Detailed Product & Process Design & Verification Stage 5 - Industrialisation & Prototype Stage 6 - Zero Series
Stage 7 - Serial Production and
Product Validation
Stage 1 - Idea Development G1 G2 G3 G4 G5 G6 G7
PM03 PM29 PM27 PM11 PM12 PM26 PM13 PM14 PM59 PM16 PM63 PM31 PM36 PM48 PM56 PM60 PM73 PM22 PM64 PM41 PM45 PM53 PM61 PM23 PM65 PM46 PM50 PM75 PM24 PM67 PM71 PM28 PM25 PM21
RI01 RI02 RI04 RI06 RI10 RI08
BC01 BC02 BC04 BC05 BC06 BC20 BC22
QU02 QU10 QU08 QU22 QU23
CL03CL06 CL10 CL17
VV04VV06 VV07 VV31VV08VV09 VV11 VV16 VV17 VV18 VV21
DI02 DI06 DI09 DI07 DI16 DI26
SC05 SC06 SC09 SC15 SC11 SC24
MR04 MR33 MR29 MR24 MR18 MR31
IC05 IC12 IC13 IC15
TP02 TP06 TP08 TP12
DI17
QU25
IC01
DI33
TP13
DI43
TP15
DI44
QU07QU29
IC36
MR07MR03
IC27 IC28
MR40
IC29
CL24 CL34 CL35
12
13. Vestas Way to Market
What?
The Vestas standard project model for new product and solution introduction:
It delivers transparency, accountability and clarification
A controlled environment for managing all process improvements and initiatives
Project planning tool, ensuring that we have ONE plan throughout
Allows Front loading of our projects and early engagement from the value chain
13
14. Project Execution Model - Introduction
14
Why?
From:
To:
Many PM roles
ONE generic PM role for
project execution
Introduction of best practise
and common language across
BUs
Different approaches
and governance MAN
Service
TSS
ONE Steering Committee
in project
Unclear
mandates in
local
committees
16. Project Execution Model – Governing Principles
The 7 governing
principles constitute the
fundamental guidelines
and the best practice in
management of the
project.
The principles can be
used independent of
the size, type or
organization of the
project.
16
17. Initial
Project
Team
Develop Scope
Scope Management
Develop BC
Stage 1
Continued
BC
justification
Learn from
experience
Defined
R&R
Manage by
Stages
Manage by
exceptions
Focus on
products
Tailor to
suit
Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7
Requirement Management
Project Governance
Project Reporting & Escalation
Project Execution
Project Reporting & Escalation
Maintain BC Verify BC
Agree tolerances
Tailoring activities
Learn from earlier projects
Set organisation
Terms & Definitions
Project Execution Model – Governing Principles
Project GovernanceTools & Systems
17
19. Control
Cabinets
The purpose of the governing bodies – 3MW Platform/ MAN(CON) as example
19
3MW Platform
Portfolio
Product
Portfolio
Council
3MW Enabler
project
Portfolio board
Gate Keepers
Go-to-market
Committee
Steering
Committee
MAN (CON)
Line
organization
(SVP)
Test
equipment
Governing
body Project
execution
Project Execution Model – Project Governance
19
20. 3 roles in the SteerCo
Project Execution Model – Project Steering Committee
SteerCo participants directing the Project
Project Contract
/Business Case
Balance demands
Facilitation of final
decision
Recommend User,
Supplier & PM
Owner User Supplier Project Manager
Define User’s quality
expectations
Realize project benefits
Make decisions re. User
requirements & conflicts
Provide User resources
Assess the viability of
the technical solution
and project approach
Accountable for the
quality of the products
Make decisions re.
supplier demands &
prioritization
Provide Supplier
resources
Delivers project scope
within cost, time,
consumption and quality
Leads and motivates the
project team
Presents the project
status and escalates risk
and issues
Manages the information
flow between SteerCo &
project team
20
24. Line Manager
Project Execution Model - Roles & Responsibilities
Core responsibilities
Project Manager Sub Project
Manager
Technical Lead Resource
Owner
Leads and develops the
technical solution in
scope
Presents the technical
status and escalates
technical risks and issues
Ensures technical scope
is fully specified and
developed incl. value
chain integration, within
the quality, time, and
costs targets
Accountable for quality
of work performed and
the quality of the
deliverables in scope
for functional area
based on people
allocation
Allocates project team
members with the right
competences at the
right time in the project
Delivers project scope
within cost, time,
consumption and quality
Presents the project
status and escalates risk
and issues to SteerCo
Manages the information
flow between SteerCo &
project team
Leads and motivates the
project team
Delivers sub project
scope within cost, time,
consumption and quality
Presents the sub project
status and escalates risk
and issues to PM
Manages the information
flow between Project &
sub project team
Leads and motivates the
sub project team
24
25. Project Execution Model - Roles & Responsibilities
Supporting responsibilities
Accountable for the
overall Quality readiness
in the project
Identifies and secures
the quality objectives are
met
Approves quality based
deliverables
Ensures QAP
compliance
Quality
Responsible
Cost
Responsible
HSE
Responsible
Product
Manager
Sets cost targets on
system and module level
Secure accurate product
cost estimation for the
full project scope
Provides Finance the
MSI level G7 cost
estimates
Ensures project meet
Cost targets
Provides HSE legislative
requirements for project
lifecycle
Secures the design fulfil
HSE and targeted
market requirements
Evaluates Safety of
product
Issues Declaration of
Conformity
Accountable for
Commercial Business
Cases
Safeguards Project
Contract from a
commercial perspective
Flags and escalates
Project Contract Risks &
Opportunities
Defines and ensures
commercial targets
for project
25
27. Copyright Notice
The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any
means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or
anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided “as is” and
Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you.
28. Copyright Notice
The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any
means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or
anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided “as is” and
Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you.
Thank you for your attention
