Knorr-Bremse: Investments for Russian market and Production in Russia – Experiances of an succesful and ongoing localisation
Dr. Matthias Krug General Direktor of LLC Knorr-Bremse „KB 1520“ Russia
March 2016
Knorr-Bremse Group │1 Agenda 1 2 3 Knorr-Bremse Group Knorr-Bremse Rail Knorr-Bremse Rail in Russia
Knorr-Bremse Group 2 Knorr-Bremse at a glance
Founded 1905 Locations more than 100 locations in 29 countries Experience 110 years of innovation (80 manufacturing sites) Independence family owned Two divisions both as global market- and technology leader Employees 23,9161 . Systems for Rail Vehicles: brake and on-board systems for rail vehicles Sales € 5.2 bn1 . Systems for Commercial Vehicles: 1 R&D expenses 5.7 % of sales brake systems for commercial vehicles and Investments € 161 m1 torsional vibration dampers
Knorr-Bremse Group 1 Annual Report 2014 │3 Knorr-Bremse is the leading supplier for braking and on-board systems as well as aftermarket services for the truck and railway industry
Development of sales Distribution of sales 2014 per division in € millions 5,206 4,241 4,300 4,303 57% 2,743
1,494 740 520 254 43%
1985 1990 1995 2000 2005 2011 2012 2013 2014
Rail Vehicle Systems Commercial Vehicles Metros Trucks Streetcars Trailers Multiple units Buses High-speed trains Engines Locomotives Special vehicles Passenger rail cars Freight cars
Knorr-Bremse Group │4 History of Knorr-Bremse Systems for Commercial Vehicles in Russia Monoblock for PAZ (April) First contract for the JV with KAMAZ - LLC Knorr- supply with GAZ ZB44 first Bremse KAMA (N.Chelny ) 100.000 compressors product produced developed (November) special for East- European Knorr-Bremse open a market Strategic Crankshaft machining (April) new representative Cooperation with SOP compressors office in Moscow GAZ Bus Division for YAMZ 530 Strategic collaboration with KAMAZ Direct deliveries to Mos (June)
ISO TU 16949 (November)
1997 1999 2000 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Supply ABS Strategic Cooperation Compressor for system on East with GAZ Group KB RUS and KB gas engine ISIZU Europe market CVS merge 1st local production in (August) Russia (LLC KB RUS, Nizhniy Novgorod) Compressor for CUMMINS Supply Air Dryer Start selling process from warehouse based in Moscow system for PAZ on LLC Knorr-Bremse CVS East Europe area Strategic (Moscow) collaboration with ISO TS 16949 MAZ SAP Certification implementation (October) (October)
Knorr-Bremse Group CONFIDENTIAL │5 Кнорр-Бремзе СКТ – Основные цели Knorr-Bremse SfN – targets Company Site
KB SfN LLC Moscow, Nizhny Novgorod
Main figures 2014 2015
12,3 mio. EUR 7,9 mio. EUR Sales / Выручка 626,9 млн.руб. 534,9 млн.руб. (act rate / курс 50.97) (act rate / курс 67.52)
53 pers. 45 pers. Employees / Персонал /чел. /чел.
Production Производство one-cylinder compressors (225cc, 320cc, 360cc belt одноцилиндровые компрессоры (225см3, 320см3, 360см3, drive, gear drive, through drive), twin cylinder (500 cc с ременной передачей, зубчатой передачей, с проходным gear drive) compressors. валом), двухцилиндровые компрессоры (500см3 с зубчатой передачей). planned SOP for pedal unit, air dryer assembly, 630cc планируется начало производства педального узла, twin cylinder through drive compressor сборка осушителей воздуха, двухцилиндровый компрессор 3 (630см с проходным валом).
Knorr-Bremse Group CONFIDENTIAL │6 Кнорр-Бремзе КАМА – Основные цели Knorr-Bremse KAMA – targets Company Site
KB-Kama Naberezhnye Chelny Tatarstan
Main figures 2014 2015
60,3 mio. EUR 41,3 mio. EUR Sales / Выручка 3 015 млн.руб. 2 063 млн.руб. *Budget rate / курс 50 *Budget rate / курс 50
197 pers. 175 pers. Employees / Персонал /чел. /чел. Production Производство drum brakes, spider machining, dampers, disc brake барабанные тормоза, гасители, механообработка assembly, Kamaz manual SLA, master cylinder, clutch суппорта, сборка дисковых тормозов, ручной servo, drum brakes for Kamaz trailer axle (NefAZ), KB регулировочный рычаг, главный цилиндр сцепления, ПГУ, clutch servo (VG). барабанных тормозов для прицепов (НефАЗ), ПГУ КБ (VG) planned SOP for automatic slack adjusters, actuators, планируется начало производства автоматических water pump, compressor, hub and drum регулировочных рычагов, тормозных камер, водяных насосов, компрессоров, барабанов и ступиц.
Knorr-Bremse Group CONFIDENTIAL │7 Production / Производство
Сборка барабанных Механообработка тормозов Сборка демпферов NBC / Location / Набережные Местоположение Челны
Total area (incl. offices) / 12 000 m2 Общая площадь Number of CNC machines Кол-во обраб. центров 9 Number of assembly lines Сборка регул. Сборка главного 8 Сборка ПГУ Кол-ко сборочных линий рычагов цилиндра
Knorr-Bremse Group CONFIDENTIAL │8 Think global - act local. Knorr-Bremse considers localization as the main key to success
With more than 100 sites in 29 different countries, Knorr-Bremse is represented on all continents Knorr-Bremse’s global production network consists of 80 state-of-the-art manufacturing sites Knorr-Bremse has a strong global footprint and a proven track record in localizing its technologies worldwide Localization guarantees customer proximity and a profound understanding of customer needs as well as high reactivity and flexibility Knorr-Bremse enforces globally applied and standardized processes as the basis for equally high quality standards and efficiency in all locations worldwide
Knorr-Bremse Group │9 Agenda 1 2 3 Knorr-Bremse Group Knorr-Bremse Rail Knorr-Bremse Rail in Russia
Knorr-Bremse Group 10 Knorr-Bremse Rail is the leading global system supplier for the railway industry, providing a broad portfolio of sub-systems and matching service solutions
ON TRAIN OFF TRAIN
Wash and Wipe Train Door Power Electrics HVAC Systems Traffic Management Systems Systems Systems
Driver Assistance Braking Systems Auxiliary Converters Control and Platform Screen Doors solution LEADER Management System
Modernization, Service and Support across the entire life-cycle CBM System Solution
Knorr-Bremse Group │11 With Knorr-Bremse RailServices our customers are always on track
Spare parts Service Training Modernization/ Engineering OEM-quality spare parts Maintenance and repair in Analysis and evaluation of Modernization advice to Spare part kits local service centers existing systems optimize technical and commercial advantage Commonest spare parts Maintenance contracts for Installation support kept in inventory entire life cycle Retrofitting of innovative Modernization concepts across all systems Obsolescence Technical support products management Training center and on-site training
Knorr-Bremse Group │12 Brake System for RUSSIAN High Speed Trains
Moscow – Kazan - ???
Knorr-Bremse Group 07506N00 - Moscow/Kazan, Brake System for Russian High Speed Trains
KB‘s Concept and Scope offered for Moscow/Kazan HST
Air condition
Doors Brake control
Windshield wipers
Air supply
Bogie equipment
Brake control incl. Service Brake, WSP, DNRA, Bogie monitoring
Knorr-Bremse Group 07506N00 - Moscow/Kazan, Brake System for Russian High Speed Trains
Knorr-Bremse has a profound experience of requirements for Russian railway vehicles
System HST Application 380km/h
Standards GOST NBzhT WSP Certification
Others Material qualifications Severe winter operation Compatibility with existing stock and Depot/Service
Knorr-Bremse Group
07506N00 - Moscow/Kazan, Brake System for Russian High Speed Trains
Simulation of the Brake system functions and components are requested
Test of SW-Brake function Communication Brake Blending Brake test
Test of pneumatic behavior Response times Functionality
Dynamometer Tests Validation thermal calculation Friction coefficient Simulation track profile
Knorr-Bremse Group
07506N00 - Moscow/Kazan, Brake System for Russian High Speed Trains
The Brake Control of KB can manage brake distances, acceleration and wheel/track adhesions as well as brake power and energy
Brake Control and Management Brake Force distribution
Thermal load
Adhesion wheel/rail ] 2 Decelerations Failure scenario LCC
Requirements for [m/s a decelaretion velocitiy v [km/h] Service brake Emergency Brake
Brake architecture supporting safety and Approval
Knorr-Bremse Group Agenda 1 2 3 Knorr-Bremse Group Knorr-Bremse Rail Knorr-Bremse Rail in Russia
Knorr-Bremse Group 18 Knorr-Bremse Rail supplys all modern train platforms in Russia and CIS with its state- of-the art products (selected examples) Velaro RUS Metro St. Petersburg Brakes Moscow Brakes Doors Brakes HVAC Power Electrics
Allegro SM6 AT / EKZ Metro Moscow Brakes KZ4A Brakes Doors Brakes Doors HVAC HVAC Power Electrics Power Electrics
Siemens Desiro RUS AT / EKZ Stadler JV Minsk Brakes KZ8A LRV Kazan Power Electrics Brakes Brakes Doors
TVZ Tver Stadler PESA / UVZ Passenger Cars Aeroexpress Russia LRV Brakes Brakes Moscow TCMS Brakes, Doors
Long Distance R&C Mass Transit Locos
Knorr-Bremse Group │19 Knorr-Bremse undertook enormous efforts to extend its GOST compliant product portfolio and develop state-of-the-art products for the Russian railway industry
Load brake valve AKB1 for freight cars
Distributor brake valve KAB60 for freight cars
■ Engineering Cooperation between RZD and Knorr-Bremse for freight cars: Development of the Distributor Valve and Brake Load valve for Freight Trains
■ Adaption of components to Russian requirements (e.g. Low temperature adaptation down to -55°C)
■ Accreditation of KB to the Test Centre in Russian System SSFZhT
Knorr-Bremse Group │20 Knorr-Bremse’s approach to the Russian and CIS market is based on a long-term strategy and willingness to invest
Service Center Production plant
KAB60 AKB1
GOST compliant product portfolio Localization in St. Petersburg Adaption of components to Russian requirements 2015: opening of new service centre Development of the distributor valve KAB60 and brake July 2016: opening of state-of-the-art production plant load valve AKB1 for freight cars (8.000sqm) Total investment: ~50 Mio. EUR Total investment: ~60 Mio. EUR
Knorr-Bremse Group │21 What we have learnt by building up our production in Russia? (some experiences I )
Certification procedure has to be organized easier
the infrastructure for the production doesn’t come in the right time: the plant is built, but there are no streets, electricity and gas near the building
the possibilities for Russian suppliers: suppliers have to have interest to be presented on the global market especially CIS and to work in international business competition conditions
international market leading products have to be the target for development of Russian industry
an open question: how to manage working without an import when there is no technology provided? How Russian Federation can integrate technology partners from abroad as partners in this case?
total quality management (TQM) need to be integrated in the whole value added process – leadership needs to be taken by entrepreneurs
Knorr-Bremse Group │22
What we have learnt by building up our production in Russia? (some experiences part II)
Investors are not enough prepared for doing business in Russia Investors have to invest always more time than excepted Russian business environment is not comparable to China or Europe long going presence and partnership are business success factors Respect culture, history and tradition The decision for the place of localisation should be a decision of the investor
Knorr-Bremse Group │23
The construction of a new state-of-the-art production plant and service centre in St. Petersburg is a clear commitment to the Russian market
Production facility Service Center
Shop floor Knorr-Bremse production plant in Budapest
■ The contracts signed on 05th of August 2014 ■ Service center in St. Petersburg started operations in February 2015 ■ A state-of-the-art production facility (8.000 sqm) was inaugurated in St. Petersburg by end of 2015 after 16 months
Knorr-Bremse intends to bring best in class / top modern production plants to Russia and build up a tier 2 supplier base
Knorr-Bremse Group │24 Localisation KAB60 & AKB1 materials from Russian suppliers
March 2016
Knorr-Bremse Group Possibilities and tasks for Russian suppliers – localization program since 2008
Knorr-Bremse Group │26 Casting & Forging: PREFFERED AND POTENTIAL SUPPLIERS
SpezSplav, Lysva LMZ, Rybinsk
ChKPZ, MetalLitMash, Chelyabinsk Kolomna
URAL AZ, UAZ, Miass ZTL, Ulyanovsk Ryazan
MLZ, Mzensk MashSteel, Penza
TS-Engineering, Voronezh
Knorr-Bremse Group │27 Machined Parts: POTENTIAL SUPPLIERS
Flaig+Hommel, Zavolzhye Glaps Engineering, Tver
KG, Kazan
c
Knorr-Bremse Group │28 Some ideas for improvement of performance of Russian suppliers for CIS and global markets 1. Customer satisfaction is not always in mind of management, sales and production staff
2. Production facilities are not in the best condition
3. Quality awareness has to be on higher level
4. Reaction time needs to be shorter in all steps of production
5. Communication to customer needs to be understood as a key success factor
Prices are not competitive because of philosophy of mass production - SMED and „one piece flow“ as solutions
Supply chain and inventory management create cash for investments
Knorr-Bremse Group │29
Support for russian foundries with german pattern maker and know-how transfer
• 3-D-files for all parts to russian foundries • Support in Russia by german pattern maker • Production of pattern and coreboxes in Germany • Training from german engineers in russian foundries • Audits by KB-Engineers
Knorr-Bremse Group │30 VL80 LOCO Modernization
• Step 1: Tap Changer
• Step 2: Further Proposals
Knorr-Bremse Group Actual Solution
+
Knorr-Bremse Group New Solution
TAP CHANGER
1. 30 no-load switches with single motor 1. 2. 4 solid state switch 3. LEM for current measurement and feedback 4. TCMS & CAN BUS for configuration 5. New Kinax handle transducer 2. +
4. 3.
5.
Knorr-Bremse Group Future Developments
ETHERNET Connection Metering Local • Ecometer • DHS Train Level
DAS • Leader System • Intelligent driver desk
Traction • Driver handle Auxiliary Converter • TCMS • TAP Changer • Braking resistor • DC Motor traction Control
Knorr-Bremse Group Proposal Advantages
Availability • Contactors and Disconnectors designed to work 8 years without maintenance • Electronic Diagnostics to prevent major loco failures • Current control for Traction Motor and gear box life improvement • Corrective maintenance time reduction
Maintenance time reduction • Commutation of contactors assisted by static switches • Easy access to every single component without disassembling the Changer (easy maintenance in situ without removing the full TAP Changer from the loco) • Replacement of camshaft and Motor Drive with multiple Permanent magnet motors solution • Use of Electronic to control the Changer (reduction of wiring and possibility of future integrations) • Reduction of number of auxiliary contacts with new simplified driver handle
Cost saving solution • Use of standard contactors from the catalogue • Less number of components • Reduction of copper connections (main connections in Aluminum bars; aux wiring removal)
Weight reduction • Removal of the big motor and camshaft • Reduction of dimensions • From 1015kg to 630kg
Knorr-Bremse Group Knorr-Bremse Rail – Safety with Tradition
Dr. Matthias Krug General Director of LLC Knorr-Bremse „KB 1520“ Russia
March2016
Knorr-Bremse Group │36