2014.10.24 Hyundai Rotem R&D center Rolling Stock Market Status to date Modular Manufacturing in Rolling Stock Hyundai Rotem Company Corporate Information Finance Construction Steel 57 Member Companies U$213 Billion Turnover(2013) 220,000 Employees . Railway System Auto Part • Rolling Stock • Engineering & Maintenance • Operation & Maintenance . Defense System Motors U$ 3.3 Billion Turnover (2013) 4,000 Employees . Plant & Machinery Total Heavy Industry Supplier Hyundai Rotem Company -2- Product : Rolling stock High Speed Trains Locomotives Light Rail Vehicles KTX-Sancheon, Korea KTX-Honam, Korea KORAIL Diesel Electric TCDD Electric Busan-Gimhae, Korea Incheon#2, Korea Locomotive, Korea Locomotive, Turkey Electric Multiple Units Diesel Multiple Units Metro Vehicles Athens Metro, Greece MTRC Metro, Hong Kong IRICO Commuter, Iran Irish Rail Intercity, Ireland Driverless Vehicles Incheon Airport MAGLEV Passenger Coaches Sao Paulo, Brazil Canada Line, Canada Commuter Vehicles SCRRA Bi-Level, MBTA Bi-Level, Wireless Hybrid Low Floor Tram USA USA TCDD, Turkey SEPTA, USA Hyundai Rotem Company -3- Main Facilities Head office (Seoul) R&D Center (Uiwang) ROTEM USA (Philadelphia) Dangjin Plant EUROTEM (Turkey) Overseas Branches 4 Changwon Plant Overseas offices 14 Hyundai Rotem Company -4- Trend and Needs . Increase in labor cost . No large scale . Penetration of local market . Surplus of manufacturer’s . Short time scale delivery projects capacity . Needs of global manufacturing plants Market Resource Customer Technology . Increase in localization . No killer technology . Demand of LCC Keen competition . Higher RAMS targets Hyundai Rotem Company -5- How to Innovate? . Productivity improvement - Shorter lead time - Standardization & Design platforms - Simpler interfaces . Competitive costs . Demand for local manufacturing Task . Modular manufacturing . Platform based designs . New manufacturing technologies & materials Methodology Hyundai Rotem Company -6- Hyundai Rotem Modular Concept Evolution Complex • Systems + Body shell (chassis) 2010 module • Cab + Cab cubicle module System base • Combined blocks (e.g. Cab, Toilet, Power pack) • Advantage for Reduced Lead time & In-house 2000 module Labor cost Functional • Functional unit (seat + under seats heater, 1990 Module cab desk kit, luggage rack, draft screens) Component level • Approx. 24,000 parts per car assembly • Low production efficiency Hyundai Rotem Company -7- Status of Hyundai Rotem Module Scope ① Driver’s cab ② Ceiling components ③ Ceiling cable tray Cab frame Insulation Cable tray Desk module Air flow ducts Wiring Cab mask Interior panels Elec. accessory Back wall & D/B Air return grilles Connectors Windshield/Wiper Lights / Interior trim ※ D/B : Distribution Board ④ Elec. Wiring conn. Train Inform. Manage. System ⑥ End Cubicle module Terminal block and connection Distribution board ⑤ Elec. equip. Under Frame module Interior panels Under frame complex modules Brake Elec. Control Unit Terminal e.g. Air brake module block and distribution box Hyundai Rotem Company -8- [ Application sample ] Under Frame Construction with Module ① U/F complex module ⑤ APU module Cable harness & conduits Engine generator set Pneumatic components & piping Cooling system Small electric equipment Accessories ② Air brake module ③ Propulsion module ④ Fuel tank (Locomotive/DMU) Compressed air supply Equip. Diesel engine module Fuel tank Pneumatic brake control Equip. Transmission module Filling cap Reservoirs & piping Accessories Gauges and sensors Hyundai Rotem Company -9- Advantages . Shorter lead time . Lower maintenance cost . Adaptation of various global . Higher availability plants to the business needs Customer . Flexible production capacity Car builder Sub supplier . Increase business chances . Package delivery . Flexible production capacity Hyundai Rotem Company -10- Conclusion and Direction Shorter lead time Productivity Lower manufacturing & maintenance costs Flexible production capacities Modular Expand outsourcing range Mfg. partnership Win-win partnerships Reliable supply chains Corresponding to the global production plant Globalization Advantages of localization Hyundai Rotem Company -11- .