Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012 KtKeynotes
U.S. Department of Transportation Federal Railroad Administration
Kevin Kesler Chief, Rolling Stock R&D
U.S. Department of Commerce National Institute of Standards and Technology Manufacturing Extension Partnership
Aimee Dobrzeniecki Deputy Director, NIST MEP Manufacturing Extension Partnership (MEP)
Aimee Dobrzeniecki Deputy Director, MEP Abou t MEP • Provide manufacturers with innovation services as well as access to public and private resources that enhance growth, improve productivity, and expand capacity.
• Work with companies ready to invest in their future, make improvements in the short term, and position themselves to be stronger long-term competitors domestically and internationally.
• 60 MEP C ent ers with 373 fi eld loca tions
– System wide, over 1,300 Non-Federal staff
– Contracting with over 2,300 third party service providers
• Performance Emphasis – we are measured on impact of center services on manufacturing firms. 60 MEP Centers Across the U.S.
800.MEP.4MFG www.nist.gov/mep What MEP D oes • MEP Center areas of innovation strength Manufacturing Services for products/processes Growth Services – new and expanded market opportunities Market Diversification Environmental Sustainability Workforce Development Lean Manufacturing & Quality Systems
• Reach nearly 34,000 manufacturing firms and complete over 10 ,000 projects per year*
*Based on FY2011 MEP Center reported performance data. $3.6 Billion $4. 6 Billion New Sales Retained Sales $1.9 Billion 60, 497 Capital Investment Jobs Created and Retained $1. 3 Billion Cost Savings
*Based on FY2010 Client reported data. MEP supports DOT’s goal of 100% dtittftdomestic content for next generati on rail opportunities MEP & DOT Partnership The Opportunity
• Market diversification, specifically in next generation rail, represents real and significant growth opportunity for U.S. manufacturers
• MEP Supplier Scoutin g process su pports connections with other federal agencies and other non-rail OEMs
• MEP’s nationwide network of manufacturing specialists provide technical and business assistance to help companies respond to these opportunities MEP & DOT Partnership Working Together • Connect ing U. S. manu facturers, large OEMs an d Tier 1 Suppliers
• Using proven partnering processes to identify capable and interested manufacturers
• Bringing opportunities to more U.S. manufacturers, those with traditional rail industry experience and new industry partners
• Supporting the firms once new connections are made Stay Connec te d!
Contact Your Local MEP www.nist.gov/mep/find-your-local-center.cfm
Visit Make it in America Website fdtiftidfor update information and oppor tititunities www.nist.gov/mep/america.cfm
Follow MEP! ‘NISTMEP’ on Facebook, Twitter and LinkedIn Next Generation Rail Equipment Keynote: The Opportunity Space and Domestic Supply Chain
U.S. Department of Transportation Federal Railroad Administration
Kevin Kesler Chief, Rolling Stock R&D
California Department of Transportation
Malcolm Dougherty Acting Director, Caltrans Next Generation Passenger Equipment
The Challenges and Opportunities
Kevin Kesler, US DOT - FRA Chief - Rolling Stock R&D
Malcolm Douggy,gherty, Acting Director , CALTRANS
Bill Bronte – Chief - Division of Rail CALTRANS Next Generation Passenggqper Equipment
The Challenge and Opportunity
• Congressional Mandate – PRIIA Section 305 • Next Generation Equipment Committee • Committee Membership, Approach and Process • Overall Goals and Guidinggp Principals • Progress To Date • Equipment Procurements – California Leadership Next Generation Rail Equipment Keynote: The Opportunity Space and Domestic Supply Chain
U.S. Department of Transportation Federal Railroad Administration
Kevin Kesler Chief, Rolling Stock R&D
California Department of Transportation
Malcolm Dougherty Acting Director, Caltrans Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012 Rail OEMs Panel 1
• Intro to products • SlSupply needs / requirements • Contact info Alstom Transportation Inc.
FRA/NIST/MEP RilSRail Supp ly ChiCChain Connect iiivity Forum
Sacramento, CA February 8, 2012 Alstom Alstom: 2010/11 Sales = $27 Billion – 93,500 Employees in 100 Countries Alstom Transport: 2010/11 Sales = $7.5 Billion – 25,500 in 60 Countries Commuter Metro High speed US Locations: Over 6,800 permanent employees Intercity in 47 states and the District of Columbia 10,000+ employees including contract workers
Alstom Transportation – FRA – December 2011 - Page 20 Hornell, NY Manufacturing Facilities
Plant 2 - ELECTRICAL SHOP (75,000 sq.ft.) Plant 3 - PARTS, SERVICE AND TRUCK SHOP (135,000 sq.ft.)
Plant 1 - CAR SHOP (420,000 sq.ft.)
New Car Facility (70,000 sq.ft.)
700,000 sq. ft. under roof on 52 acres at 3 separate locations within a 1 mile radius Mare Island, California
o Renovation & Assembly o Truck, engine and wreck repairs and rebuilding o Testing and diagnostics for electrical systems o Full paint service o Distribution center for parts
Mare Island, California Providing service to the West Coast 112,000 Sq. Ft. A complete range of passenger rail products
Rolling Stock: from Light Rail to Very-High- Speed trains
DISTANCE Locomotives Very high speed
Intercity Commuter Tram- Metro trains
High speed
SPEED Light Rail & Trams NYCT - New York City Transit WMATA – Washington D.C. Amtrak & Caltrans NJT - New Jersey Transit Page 28 Supply Needs
• Electrical • Metalic - Cable & Wire - Sheet Metal Parts & - Connectors Fabrication - Printed Circuit Boards - Castings & Forgings - Relays - Machined Parts - Brake Resistors - Heat Treating & Coatings - Circuit Breakers - Steel & Aluminum – Sheet - Misc. Electrical & Plate Components - Fasteners
• Interiors • Other Items - Seats - Training - Floori ng Sys tems & - Parts & Maintenance Coverings Manuals - Windows / Glazing / Glass - Field Service Warranty Panels Labor - Lighting - Labeling - Interior Panel Systems - FRP Insulation
Sourcing Contacts
Jason Huyler ALSTOM Transportation Inc. Commodity Manager – Interiors Tony Rakoczy 1025 John Street Director Sourcing Rochester, NY 14586 ALSTOM Transportation Inc. Email: jason.a.huyler @transport.alstom. Commodity Manager – Tier 1 Suppliers com (A Systems) Phone: 585-279-2156 1025 John Street Roc hes ter, NY 14586 Steve Miller Email: [email protected]. ALSTOM Transportation Inc. com Commodity Manager – Mechanical Phone: 585-507-0650 1025 John Street Rochester, NY 14586 Email: [email protected] Shelly Nasca m ALSTOM Transportation Inc. Phone:585-314-2788 Commodity Manager – Tier 1 Suppliers (A Systems) Robin Fluman 1025 John Street ALSTOM Transportation Inc. Rochester, NY 14586 Commodity Manager – Electrical Email: [email protected] 1025 John Street om Rochester, NY 14586 Phone: 585-279-2158 Email: [email protected] m Phone: 585-279-1698 Thank You Roelof van Ark 10/20/2009 Thank You Roelof van Ark 10/20/2009 34 LBP Rev_5_2011 EMD Quick Facts
• Founded in 1922, Electro-Motive Division of General Motors • Owned by General Motors for most of its history • Sold to private equity in 2005 • Since then, revenues have more than doubled, exports increased five-fold, 40% aftermarket growth • Supply base has the majority of its partners located or ship from within a 500 mile radius of Chicago •Spp$yend in excess of $1B annually • Sold to Caterpillar/Progress Rail in August 2010
35 LBP Rev_5_2011 Caterpillar
• Sa les $52B
• 100,000 CAT Employees / 50 Countries
• 100+ Manufacturing Locations
• 500+ Products
• 1.8M Aftermarket Parts
• 180 Dealers
• 131,000+ Dealer Employees
36 LBP Rev_5_2011 Progress Rail
• Subsidiary of Caterpillar
• 110 US Facilities
• 33 International Facilities
• Locomotive Upgrade and Repair
• Railcar Reman
• Rail Repppair and Replacement
• Signal Design and Installation
37 LBP Rev_5_2011 ElectroElectro--MotiveMotive Manufacturing Locations
• 4 Manufacturing Operations
• Locomotives - Freight - Passenger
• Power Products - Marine - Stationary Power (Drill Rig) - Industrial (Back-up Power Units)
• LaGrange, IL • Aftermarket Components • Muncie, IN • 2300 Employees • San Luis Potosi, MX • Sete Lagoas, Brazil
38 LBP Rev_5_2011 EMD Around the World Nearlyy, 33,000 active EMD locomotives
Europe Middle East & 1,529 North Africa 2,539
North America Asia 23,117 1,537
South America 1,466
Sub-Saharan Africa 1,174 Australia 13881,388
39 LBP Rev_5_2011 EMD Product and Service Offerings
Aftermarket Parts Services
Signifi can t fu ture growth opportunities by focusing on “green”, safety, service and new products
PPdtPower Products Locomotives
40 LBP Rev_5_2011 Forecast Demand
• Significant growth in forecast • <100 locomotives 2010 • >200 l ocomoti ves 2011 • Doubling volumes for 2012 forward • Growth from CAT / PR synergies its • Growth from stronger customer relationships
• Growth from 2015 emissions pre- Un Number buy expected • Growth from further recapturing EMD’s aftermarket • Growth from Transit industry expansion 2011 2012 2013 2014 • Growth from focus on cost out and being more cost competitive
41 LBP Rev_5_2011 90/10 Locomotive Philosophy
Overview
• 90/10 targeted 90% common content between customers for a locomotive model
• 85% of locomotive content is the same between AC and DC models
42 LBP Rev_5_2011 North American Class Locomotives
SD70ACe
• Tier 3 emissions compliance with service proven 710 engine • Reliable & durable • Enhanced crew comfort & ergonomics • Improved diagnostics/prognostics • High starting & continuous tractive effort • Designed for maintainability
43 LBP Rev_5_2011 Locomotive Rebuild / Repower
• Freight and Transit customers rebuild in-kind - EMD components, Progress Rail rebuild
• Electro-Motive 710ECO Repowers Before After • Progress Rail Caterpillar Repowers and GenSets
• Significant quoting activity for rebuild / Repower
• Government funding available due to emissions reduction in Repowers and GenSets
44 LBP Rev_5_2011 Aftermarket Parts
• Stronger position worldwide with association with Progress Rail / Caterpillar
• More coverage for Services and Parts Distribution locally and internationally
• Long term spare parts contracts signed with customers
• Positioned to offer rebuild of major assemblies and components
• Strategic alliances with customers to guarantee supply of materials (one stop shop)
• Strategic alliances with suppliers
45 LBP Rev_5_2011 EMD Initial Design Concept Next Generation Passenger Locomotive
46 LBP Rev_5_2011 What does this mean to EMD Suppliers?
Opportunities for EMD suppliers to participate in the growth
Requirements: Quality, Cost, Delivery, Brand Protection
Collaboration!
47 LBP Rev_5_2011 Summary
FAQ
• How and whyygg are EMD’s needs changing in terms of quality, delivery, price and dimension and how can suppliers help? 9 EMD has moved from operating in the declining stage of the business model under GM to the embryonic under equity partners and now growth stage as part of CAT/PR
9 Opportunities for material supply and locomotive manufacture are being sought worldwide
9 Significant % of the EMD product is externally procured
9 Collaboration with supplier/partners with the same mentality for growing our businesses together – continuous improvement , aggressi ve cost red ucti on programs, qualit y and process improvements to remain the quality leader and stay competitive
9 EMD must offer lowest cost, highest reliability, quality product anddd deli ver i n i ncreasi ngl y sh ort ened dl leadti mes
48 LBP Rev_5_2011 Summary
FAQ
• How can suppliers better position themselves for the changing environment? 9 Today, EMD works closest with only those suppliers that can hel p us grow and we reward th at eff ort with LTA s and volume – Optimize product and process design to eliminate defects and rework – Increase material utilization and flow – Raw material aggregation, cost transparency – Work with engineering during design process to design costs out and reli abilit y i n, up-ftfront – Be creative in solutions
49 LBP Rev_5_2011 Summary
FAQ
• What key factors would enable domestic suppliers to compete with low cost economies? 9 EMD evaluates suppliers based on Total Landed Cost 9 Includes transportation, duty, taxes, VMI programs, quality and delivery history, absorbing NRE, ease of doing business 9 Process optimization 9 Same quality processes, PPAP 9 Participate in low cost economies sourcing within your own supply chain if benefits prove out 9 Identify benefits of re-shoring in US
50 LBP Rev_5_2011 Summary
• What value “adders” can suppliers bring? 9Opp,g,en communication, ease of doing business, openness to change 9Design for manufacturability 9Using latest cost saving technology 9Returnable containers 9Price efficiency, year over year price productivity 9CtCost sav ings sh hiaring, cost tt transparency 9Vendor managed inventory 9Longer warranties
• Collaboration is key to our mutual success
51 LBP Rev_5_2011 We believe in the future of passenger rail transportation! Siemens Rail Systems
Presented by: Becky Johnson, Director of Public Affairs Siemens Infrastructure & Cities Sector Amtrak Locomotives Rail Systems Vehicle Manufacturing Plant Sacramento, California
Test track Final Assembly & Testing Cladding & Steel Warehouse Windows
Bogie & Carshell Welding
Main Line Rail
Finishing Commissioning & Service Offices
Water test facility & Loading tent
Subassembly, Warehouse & Offices Offices Parking & Solar Panels What you ’ll see first Car Shell Welding & Bogies Paint Shop
Siemens reduced volatile orggpanic compound waste by more than 50%, while increasing production by more than 200% in less than three years .
Other environmental practices in place:
Up to 82% of all the non- food/wet waste materials from the entire Sacramento plant are sent for sorting and recycling.
Siemens continually works on environmentally tibl d t d i Final Assembly Test Track
Our ¼ mile test track runs along the southwest portion of our 54 acre campus.
We will soon be adding a single volt test track to accommodate the Amtrak electric locomotives. How to be a vendor
Thorough application and evaluation process:
• Financials • Quality • Technical review Next Generation Rail Supply Chain Connectivity Forum Sacramento, CA, February 8th, 2012 ABOUT US
Train Manufacturers and Maintainers
■ Established in 1942 ■ First Talgo trains built in the U.S in 1949. ■ Over 70 years manu fact tiuring t tirains ■ Over 60 years maintaining trains ■ Over 30 years manufacturing maintenance equipment ■ Over 3,500 vehicles built ■ Over 300 maintenance equipment built ■ Standard and customized applications ■ Unique technology ■ 100% compliance with all deliveries ■ Safety record TALGO WORLDWIDE
OFFICES AND MAINTENANCE WORKSHOPS
MANUFACTURING PLANTS TALGO ROUTES
USA
KAZAKHSTAN UZBEKISTAN BOSNIA & SPAIN ARGENTINA HERZEGOVINA OUR BUSINESS
TRAINS MAINTENACE EQUIPMENTS MAINTENANCE SERVICES OUR PORTFOLIO
Very High Speed
High Speed
Intercity
Locomotives OUR PORTFOLIO
UNDERFLOOR WHEEL LATHE MODEL 2112 UNDERFLOOR WHEEL LATHE MODEL 4112
UNDERFLOOR WHEEL LATHE MODEL 3112
TALGO SHUNTING CARS WHEEL MEASURING SYSTEM ABOUT US TlTalgo ’s RlRole in t he Nort hAh Amer ican Mar ket
Manufacturing facility in Milwaukee, WI Four 125-mph Talgo Trains to be delivered in 2012 Two will protect the existing Hiawatha service (Chicago - Milwaukee) and … Two will supplement the five sets now in Cascades service (Eugene – Portland – Seattle – Vancouver) Maintenance equipment to be delivered in 2012 Maintenance operations in Seattle (WA) and Milwaukee (WI) Potential Suppliers in North America What can we offer? A market that is not crowded, for each an every industrial sector you can think about.
NO EXCEPTIONS What do we REALLY expect from you? Flex ibility, Know How, Proximity and Patience Flex ibility
•To adjust your manufacturing processes to new standards •To help us to adjust our designs to your manufacturinggp processes •To adjust to a market that is not too big but actually not really small KHKnow How •Excellence in your manufacturing process •Excellence in your design process •Excellence in your supply chain management •Excellence in your customer service andid maintenance processes Proximity
We are not just manufacturers of equipment, we are maintainers of equipment. Patience
This is a market with lots of room to grow. BtthbBut the bes tit is ye ttt to come Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012 Rail OEMs Panel 2
• Intro to products • Supply needs / requirements • Contact info
GE Transportation
Maximizing Performance, Jobs and Investment for U.S. High Speed and Intercity Passenger Rail
Next Generation Rail Supply Chain Connectivity Forum Feb 8, 2012 GE Transportation at a Glance Locomotives Locomotive Services
Global Signaling & Propulsion & Specialty Global Rail Operations
9Global HQ: Erie, PA (USA) 9Revenue (2008): $5.0 billion 90 / GE / GE Proprietary and Confidential February 16, 2012 US & International Customers/Locations
Latvia Siberia UK Latvia Russia Yakutia Railways Canada Freightliner Yakutia Canadian Pacific Canadian National Kazakhstan Mongolia Poland Yrysty Mongolia Railways United States Terim Zholy Transcon KCS, NS Erie PA, (Loco Assembly) CB Rail Turkey CSX Grove City, PA (Engine) Tulomsas BNSF Texas Plant Libya China Union Pacific Libya Egypt MOR Amtrak Mexico Railways ENR India MetroNorth Ferromex Indian Railways LIRR E. Africa W. Africa RVR/KR (Kenya) Columbia NRC (Nigeria) Tazara (Tanz)) Prodeco Comilog (Gabon)
Indonesia Brazil PT Inka MRS CST Vale Southern Africa ALL Australia Cosan/Rumo Kumba Rio Tinto-Pilbara Transnet - Locomotive Assembly Pacific National RBCT FMG RBM Queensland Rail Sheltam UGL Botswana Namibia
• ~17,000 locomotives in more than 50 countries • ~300+ Locomotives in intercity passenger service 91 / GE / • 60+ locomotive service facilities February 16, 2012 GE Passenger History & Capabilities
Metro North Locomotive Genesis Locomotive Grove City, Engine Plant Erie PA Plant Dual mode application Launched in 1991 Manufacturing Engines since 1971 Transportation home since 1907
Long history of supplying passenger locomotives Fully integrated US manufacturer
9 Over 300+ locomotives supplied to North 9 Over 4000+ employees with mfg American customers in last 15 years facilities in Erie (Loco) & Grove city (Engine)
9 Only North American manufacturer with 9 Only current US passenger proven AC, DC and Dual Mode technology manufacturer with own engine technology
9 Primary customers: Amtrak, Metro North, 9 Only US fully integrated builder… Via Rail … Design, develop & manufacture
92 / GE / GE Proprietary and Confidential February 16, 2012 New HSP 46: Creating Jobs Now!
• GE’s goal is to meet FRA and US DOT goal to maximize Buy American content and meet 100% Buy America component mandates.
• GE supports administrations goal to generate high paying manufacturing jobs today!!! By investing in technology
• Next Generation Locomotive being launched in end of 2012
• Approximately 1000 U.S. 93 / GE / manufacturing jobs created/sustainedFebruary 16, 2012 GE-MPI Next Generation Locomotive Key Technology Improvements Over Current Fleet
98% better fuel economy
978% reduction in PM & 56% in NOx - Tier 3
9MliblACiiMore reliable AC traction…increase diid mission completeness
9Designed with push pull capabilities
9Reliable single engine and integrated HEP system to minimize LCC and maximize performance
955% fas ter acce lera tion…re duce d tr ip-time
94 / GE / February 16, 2012 Looking for Key Suppliers
$2.0B buy Æ 20 countries Total of 2500+ suppliers Introduction to Nippon Sharyo, Ltd. (Japan)
Corporate Profile (March, 2011) Head Office: Naggyoya, Aichi, Ja pan Established: September 1896 Paid-in capital: US$ 131 million (11.8 billion yen ) Sales: US$ 1.1 billion ((y)94.8 billion yen) Employees: Approx. 2,000
ISO Certification
ISO9001ISO1400 1
97 Nippon Sharyo, Ltd. (Japan)
Sales from Each Division
8.5% 14.8%
52.6% 24.0%
98 Nippon Sharyo, Ltd. (Japan) Overview of the Toyokawa Rolling Stock Plant • Main Products: Rolling Stock (EMU including High Speed Rail, DMU, LRV, Locomotives) • Plant Opening: April, 1964 • Total Land Area: 77.5 Acres (314, 000 m2) • Area of Building: 1,307,000 Sq. Ft. (101,000 m2) • Manufacturing Capability: Max. 600 Cars / Year • Direct Employees: Approx. 1, 100 (As of M arch 2011)
Toyokawa Rolling Stock Plant 99 Toyokawa Rolling Stock Plant
Profile
• Administration •Design • Engineering • Carbody and Truck Production • Final Assembly • Quality Assurance • Purchasing • Material Storage (all types of material including stainless steel, aluminum, mild and HTLA steel sheets and plates) • Test and Inspection (including watertightness test facility, inspection pits, climatic test chamber for complete vehicle) •Test Tr ack: 0. 5 mil e (800 m ) Rolling Stock Plant of Nippon Sharyo 100 High Speed Rail
1964 1986 1997 1999 2005 Taiwan
Series 0 Series 100 (130mph) Series E2 (143mph) (171mph) Series 700 Series 700T (177mph) (186 mph) 19821992 1997 2007
Series 200 (137mph) Series 300 Series 500 (168mph) (186mph) Japan Series N700 (186mph)
Over 3,200 cars completed as of Dec. 2011 101 Express Trains in Japan
Series KIHA-KIHA-281281 Tilting DMU Series 683 EMU Series E351 Tilting EMU for JR Hokkaido for JR West for JR East
Type 50000 EMU (Articulated) for Odakyu Series 2000, 2200 Airport Express EMU for Meitetsu
Series 285 Double Deck Sleeper EMU for JR Central and West Series 383 Tilting EMU for JR Central 102 Global Experience
Taiwan Taiwan Taiwan California Illinois Indiana
Los Angeles Maryland Thailand Asia USAU.S.A
Singapore South Taiwan Venezuela America
Indonesia
Indonesia Philippines Argentina Brazil
103 Supply Record in North America
1982 - 2000 (71) 1985 - 1992 (63) 1993 - 2005 (479) 2007 - 2009 (71)
NICTD MARC METRA VRE EMU Coach Gallery Coach GllGallery ChCoach Indiana Maryland Illinois Virginia 1984 - 1999 (93) 1989 - 1992 (69) 2005 (26) 2008 (14)
CALTRANS LACMTA METRA NICTD Gallery Coach LRV Gallery EMU Gallery EMU California California Illinois Indiana All 886 cars have been delivered on time, on budget.
104 Nippon Sharyo U.S.A., Inc. Corporate Profile • Headquarters: Arlington Heights, IL 9 miles from O’Hare Airport • Established: May 1982
Organization (Reorganized October 2010): Nippon Sharyo U.S.A., Inc.
Nippon Sharyo Engineering & Marketing, LLC Strategic Planning, Marketing Activities, Engineering, and General Customer Relations Nippon Sharyo Manufacturing, LLC Project Administration, Procurement, Manufacturing, Quality Control and Warranty Service
105 Nippon Sharyo Manufacturing, LLC Rochelle Rolling Stock Plant (new) Location: Rochelle, IL Start of Operation: 3rd Quarter 2012 (scheduled) Employees: 120 by the end of 2012, 250 by mid 2014 Capacity: 120 Passenger Cars / Year Size: 463,000 sq. ft. on 35 acres
Chicago Rochelle
106 Production Facility in Rochelle Test Track 2,300 feet
Final Assembly & Inspection Carbody Assembly Underframe sub‐assembly Material Storage Side frames sub‐assembly Office Roof sub‐assembly
107 Opportunities with NS
METRA 160 EMU (Chicago, IL) Production 3Q 2012 – 2Q 2015
SMART 12 DMU (option 146 cars) (Sonoma and Marin County, CA) Production 2Q 2013 – 1Q 2014
Metrolinx 16 DMU (Toront o, C anad a)
Production 2Q 2013 – 1Q 2014, 2Q 2015
108 108 Teamwork The NIPPON SHARYO TEAM’S Philosophy Quality Cars On-Schedule On-Budget
Our new rail cars are products of the input and cooperation of over 200 suppliers. Our suppliers gain valuable experience when they support our achievement of these 3 fundamental goals. (And we’ve been successful every time!)
109 Supplier Requirements QliQuality • Demonstrate quality to Nippon Sharyo and the end customer. • Comply with the Customer Quality Plan. • Produce consistent and accurate parts.
Sample Customer Sample Nippon Sharyo Quality Requirements Audit Report 110 Delivery Requirements On-ShdSchedul e DliDelivery
Parts deliveries are planned and controlled by Nippon Sharyo . Sample of our Material Delivery Control Sheet:
VRE 10 cars ` Delivery control sheet for SS and Subcontractor
Vendor From Rec. TOTAL Scheduled Due Installation S.N Po_No. PART No. DESCRIPTION Shop STN. DRG. No. SPECIFICATION UNIT Receiver# name NMCS Total ORDER ship date date date
235 7101 148103 Truck (T2A) E 0.0 10 10 10 PC 9/16shipped( vs2885(1) 27-Jul 17-Aug 1) vs2892(1) vs2896(1) vs2897(1) vs2919(1) vs2920(1) vs2929(1) vs2930(1) ,vs29 35(1) vs2981(1) 236 7101 148104 Truck (T2B) E 0.0 10 10 10 PC 9/16shipped( vs2885(1) 27-Jul 17-Aug 1) vs2892(1) vs2896(1) vs2897(1) vs2919(1) vs2920(1) vs2929(1) vs2930(1) vs2935(1) vs2981(1)
111 Budget Requirements On-Budget
• Par ts d e lays s ign ifican tly increase our cos ts, so be vigilant regarding the schedule.
• Always look for design updates that can take cost out of the product.
• Evaluate new production technologies to determine whether they can provide a cost benefit.
112 NS Supplier Story in America
• All of our major suppliers have manufacturing or assembly facilities in the US. • 135 American suppliers supported us on recent orders from Metra, NICTD, and Virginia Railway Express. • With our recent establishment in the Midwest, we have increased our use of Illinois suppliers, with around 50 being involved in our projects over the last 10 years. • Nippon Sharyo’s total purchasing volume over those years is close to $500 million with nearlyygg $200 million of that going to Illinois businesses. • Economists project that every dollar spent in Illinois on railcar projects generates another $2 or $3 to the Illinois economy. • The total Illinois economic impact of our recent project is close to $1 billion. • A number of suppliers received their introduction to the passenger railroad industry from Nippon Sharyo, and have been able to expand their technical capability and market penetration as a result.
113 113 Major Suppliers
• Kustom Seating & KPS North America ( passenger seating ) • Vapor ( door operators , and door controls ) - Wabtec • San Mateo ( misc. parts ) • WABCO - Westinghouse Air Brake ( braking system ) - Wabtec • R & W Wheel Machining ( wheels ) • Clements National ( special railroad cables ) • Prime Cast / Atchison Casting (Truck parts and assembly ) - Bradken • TTA ((g air conditioning units and heatin g)g controls ) • Elcon National ( doors and side windows ) – Faiveley Transit • Trans-Lite ( lighting ) • Ricon ( wheelchair lift ) – Wabtec • Alstom Signaling ( cab signal system ) • Microphor ( toilet ) - Wabtec • Koshii Maxelum America ( interior panels )
114 114 Our Goal
Happy Customer
115 Rail Supply Forum February 8, 2012 About MotivePower • MotivePower, Inc., a Wabtec Company, is an industry leader in the design, manufacture, and re-manufacture of diesel-electric locomotives for Freight, Switcher, International, and Passenger Customers
• Located in Boise, Idaho
• Formed in 1972
• Currently 700+ employees 660 empliBiIDloyees in Boise, ID 40 employees at various contract locations
• Quality Certifications AAR M-1003 Certified ISO 9001:2008 Registered Core Competencies & Projects • Core Competencies: Desigg,n, app lication and s ystems inte gration en gineerin g Manufacturing and servicing locomotives Project management and contract administration • We are currentl y b uildi ng passenger l ocomoti ves: Sounder in Seattle SunRail in Central Florida MBTA in Boston GO Transit in Toronto • Most of the projects that we undertake in this market are required to comply with Buy America • MotivePower has been the OEM for 70% of the Diesel- Electric passenger locomotives built for the NA market in the past 10 years Main Facility
8 4 5 3 9 7 6
2 10
1
1. Administration Buildings 7. Component Assembly Shop 2. Fabrication Shop 8. High Voltage Cabinet Shop 11 3. Finish Shop 9. Locomotive Assembly Shop 4. Emissions Testing Facility 10. Shipping, Receiving & 5. Strip, Wash, Blast & Prime WhWarehousi ng Facility 11. Locomotive Paint Shops 6. Component Paint Shop Locomotive Assembly Line
PRIIA:
The PRIIA Specification is a call for change from previous freight based designs for passenger equipment: • Lig ht We ig ht • High Speed • EPA, FRA, BUY AMERICA Requirements • Even more Specialized Components and Construction Techniques • Affecting every element of the vehicle Manufacturing must occur in the USA Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012 Traditional Suppliers
• Rail supply products • Markets/customers served • Benefits of supply • Supply requirements (up & down) • Certifications • Supply chain issues / needs Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012 Non-Traditional Suppliers
• Motivation for supply GENERALGENERAL FFOUNDRYOUNDRY interest • Target business results • Barriers / challenges to market entry • Supply concerns / SERVICE unknowns
129 Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012 Supply Chain Connectivity Discussion of OEM and Supplier Panel Issues
Featuring:
Kevin Kesler, DOT FRA Bill Bronte, Caltrans
Moddderated by Dave Stieren, NIST MEP Closi ng R emark s
The Honorable Ray LaHood Secretary of Transportation OEMs / Tier 1s Conducting One-on-One Meetings
(2)
(2) Next Generation Rail Supply Chain Connectivity Forum StSacramento, CA February 8, 2012