The document summarizes improvements made at the Siemens SwitchBoard Factory in Colombia. It discusses current measures like standardizing processes, outsourcing metalworking and surface treatment, and implementing 5S. Future measures include purchasing new machines to increase efficiency, implementing a planning software, and transitioning to a Siemens manufacturing model. This would increase production capacity while reducing costs and space usage.

1. SWITCH BOARD FACTORY SIEMENS COLOMBIA ENERGY DISTRIBUTION EDMV-P

3. AGENDA

4. AGENDA

5. AGENDA

6. 1. GENERALITIES Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

9. PLANIFICACION PREFABRICACION MECANICA MICHAEL VETTER DESARROLLO DE PEDIDOS JAVIER PATIÑO O. RODRÍGUEZ COORDINADOR HUMBERTO GÓMEZ MIGUEL SÁNCHEZ PABLO RIFALDO INDUSTRY ENERGY - M HERNANDO ROMERO COORDINADOR ISRAEL ZABALA PEDRO IBAÑEZ EDWIN FIRACATIVE JULIÁN TORRES COORDINADOR ÓSCAR DÍAZ ENERGY - EA ENERGY – TP/TD HANS MUTTER J. CUBILLOS OMAR SOMBREDERO CONTROL DE CALIDAD Y MEDIO AMBIENTE GESTION DE CALIDAD LUIS VARGAS COMPRAS WILLIAN DE LOS RIOS DISPONENTE MARTHA COGUE JACKELINE HERNANDEZ JEFE DE PRODUCCIÓN ALEXANDER SANDOVAL CAMPO NDE PRUEBAS JOSE SANCHEZ MARTHA RODRIGUEZ NELSON CASTAÑEDA JUAN MURILLO 1.3 Administrative Personnel- Organizational Chart GIOVANNI VALDELAMAR JEFE COMERCIAL PTD-W WILSON VEGA GERENTE FÁBRICA PTD-W RÓMULO HERNÁNDEZ MILENA SÁENZ COMERCIAL JUNIOR LIGIA SÁNCHEZ ASISTENTE ADMIN. PLANEACIÓN ANDREA RODRIGUEZ PLANEACIÓN CARLOS D. MAHECHA JHIMY TRUJILLO COMPRAS

10. 1.3 Administrative Personnel- Organizational Chart

11. 1.4 Reported Data Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

12. +56% Budget 5.227 1.4.1 Invoices and quantities of the SwitchBoard factory 2005-2012 Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

13. 1.4.2 Our Costumers Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

14. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 1.4.3 Behavior of Medium Voltage

15. 1.4.4 Records NC Of´ 2007 vs 2008 Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 Supplier NC Disign NC Factory Nc standardization NC

16. Q NC-s Additional 2,74* 0,67* *Number of NC’s per person 2007 2008 2007 2008 13% 1.4.4 Records NC Of¨ 2007 vs 2008 Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

17. 2. CURRENT MEASURES OF IMPROVEMENTS Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

18. With the standardization of our products and processes, the factory created a brochure for our clients. 2.1 Standardization Processes Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

19. STRATEGIC ALLIANCES We have generated strong bonds with our suppliers, this way our production is more flexible and adaptable to the changes of the market. We search in our constumers high standards of quality, like internal programs of continuous imrprovement to guarantee excellence in our production . 2.2 Outsorcing / Strategic Alliance Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

20. 2.2.1 Methalmecanics

21. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 PINTECO Fimm power c5 Until Cr 6 Bending machine Adira 225 Ton Punching Machine CNC 2.2.1 Methalmecanics

22. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 Industrias Pintumel 2.2.1 Methalmecanics

23. SILVER SURFACE TREATMENT BICROMATIZED PAINTING 2.2.2 Superficial Treatments Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

24. INSULATOR PLATES ACRYLICS MECHANIZED 2.2.3 Other processes

26. Waste Reduction Noise Reduction Professional Risk Reduction Less danger Less Costs ENVIRONMENTAL IMPACT Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 2.2.5 Benefits Outsourcing Processes

30. Movement of inventory costs to costumer It was detected that it was not possible to invoice many production orders given that the electrical equipments of the panels had not arrived to the factory , hence is was not possible to deliver them to the client ; ( the client is the part responsible of the ensuring the on – time arrival of the equipments) .As a result the factory decided to make agreements to anticipate invoices . This way the working processes will be reduced . To list updated production orders. To order chronologically the reasons of the delay To Identify the cause of delay with quality To Talk with the client to get agreements with the movements costs. To check with the warehouse the material delivery. To invoice the pending orders 2.3.2 Current Activities Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

31. Optimazation of the structure of the provisioning material The structures are overvalued in quantities and also a lot material exist with low rotation and hight scope that actually is not being used in production. The factory will be identified this material to sale and reduce the own material. The purchase processes will be aligned with the process Source SCM , assignig the roles and responsasbilities clear To make a report of all material ( Provisioning risk quantity) To analize the risk quantity and Thecnical and identify the materials with a scope major a 18 months To identify the material that can be used in currents proyects To Detain order purchase with similar material To identify suppliers that can be interesting to buy material To sell material obsolete To revaluate the wayy thas was being calculated To Define clear rsponsabilities of the approvisioning process To adjust the structures of finished products 2.3.2 Current Activities Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

32. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 2.3.2 Current Activities

33. 2.3.3 Scope Inventory Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 Months

34. Movements of inventory costs to constumers Optimization structure of the provisioning material BNK = COP 24,1 mill / mes = COP 163,3 mill Recovery for sales material = COP 173,1 mill Responsabilities clear = COP 30,5 mill Total = COP 367 mill = US 200.000 2.3.4 Cost Savings Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

35. 2. 4 5´S Program

37. After Before 2.4.1 Implementation of 5´S Program Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

38. 2. 5 Latest Products

39. 2.5.1 Latest Products SIMOPRIME

41. 2.5.3 . Software, Trainnig and Quality Certificates Quality Certificate Training Certificate Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

42. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 2.5.3 . Software, Trainnig and Quality Certificates

43. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 2.5.3 . Software, Trainnig and Quality Certificates

44. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 2.5.3 . Software, Trainnig and Quality Certificates

45. 2. 6 Lean Manufacturing

46. The factory made a pilot test in the circuit breakers assembly area. The production flow was analized and improved. 2.6.1 Circuit Breakers Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 Circuit Breakers

47. BEFORE AFTER Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 2.6.1 Circuit Breakers

49. Render Priview Current 2.6.2 Pre wering Working Station – Pre Wiring Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

50. 3. Future Measures Of Improvements Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

51. 3.1 Planning Software & Production Input Type Of Product Quantity Date of Delivery Data Base Standardized Products Master of Materials TAROK-SAP Factory Resources Daily Updates OutPut Order Factory Capacity The optimun use of resources Occupation by working Place Row Material by working place Reports and statistics Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 Order Delivery Program SPCP

52. 3.2 Machine Purchase Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

55. 4. Siemens Manufacturing

56. 4.1 Overview- Benefits Current Factory vs Siemens Manufacturing Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 50% Reduction 120 millones COP 240 millones COP 34% 13.20 9.8 Over Time Cost -32,% 100 147 Indirect Employess 86% 130 70 Direct Employees 105% increase 4000 m2 1950 m2 Area M2 Increase % Siemens Manufacturing Currenttly Parameter

57. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.2 Copper Manufacture

58. 4.3 Circuit Breaker Assembly and test Field Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008

59. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.4 Testing Of Panels and Circuit Breakers and Bushing Comparments

60. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.5 Medium Voltage Assembly

61. 4.6 Low Voltage Assembly

62. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.7 Pre-wiring Area

63. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.8 Drawer Assembly and Wiring Area

64. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.9 Medium Voltage & Low Wiring Control

65. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.10 Wiring Medium Voltage & Medium Voltage

66. Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.11 Low Voltage & Medium Voltage Test Field

67. PRUEBAS SIEMENS MANUFACTURING Nov. 2008 Energy Distribution © Siemens Austral – Andina 2008 4.12 Protection & Control Test Field