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Etola Introduction & Key Business Areas Sales l 2011-4-1 l Henri Manner

Etola products henri manner 2011 v.2

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Etola China Offering:- Standard Industrial Parts Management- Hydraulic Fluid Systems- Cooling & Lubrication Systems

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Page 1: Etola products henri manner 2011 v.2

EtolaIntroduction &

Key Business Areas

Sales l 2011-4-1 l Henri Manner

Page 2: Etola products henri manner 2011 v.2

Table of Contents

1. Etola China Introduction

2. Renergy CFL-System

3. Pipe Assembly

4. Hose Assembly

5. VMI-Service

6. Q&A Session

22

Page 3: Etola products henri manner 2011 v.2

1. Introduction, Key Figs & Business Model

Facilities: Tianjin 5.800 sqm and Shanghai 600 sqm

Personnel: 80 (2 foreigners and 78 Chinese)

Sales Budget ¥100m in China Etola Group €400m

www.etola.fi

www.etra.fi

Stock Value ¥25m All Etola Group Cos’

warehouse valuetotalling €40m

33

Business Model

C-Parts Management

Page 4: Etola products henri manner 2011 v.2

1. Introduction, O-Chart44

Page 5: Etola products henri manner 2011 v.2

1. Introduction, Qlty is Nbr.1

Etola hydraulic pipe and hose assemblies have been approved and registered by DNVISO9001:2008 QMS

Etola is commited to continuousimprovement per ISO9001:2008requirement in product and processQuality

Etola Management Team will havemeetings on half year basis to evaluate and develop our valueproposition

55

Page 6: Etola products henri manner 2011 v.2

1. Engineering l Systems

LUBRICATION SYSTEM in an Industrial Gearbox Application

66

++

or

Pressure hose

Suction hose

Page 7: Etola products henri manner 2011 v.2

1. Engineering & Sub-Contracting l Assemblies

77

MYMY--Wind 3 MW WIND TURBINEWind 3 MW WIND TURBINE•• Hydraulic pipe assembliesHydraulic pipe assemblies•• Hydraulic hose assembliesHydraulic hose assemblies•• Piston accumulatorsPiston accumulators

Page 8: Etola products henri manner 2011 v.2

1. Service l Industrial Products88

Service at the customer’s factory VMI:Service at the customer’s factory VMI:

•• HydraulicsHydraulics

•• FastenersFasteners

•• SealsSeals

•• Other COther C--PartsParts

Page 9: Etola products henri manner 2011 v.2

1. Etola China Milestones

Adding Value to our Customers in each step!

99

Oct. 12 2005Oct. 12 2005Oct. 12 2005Oct. 12 2005

Apr. 2006Apr. 2006Apr. 2006Apr. 2006

Sep. 2009Sep. 2009Sep. 2009Sep. 2009

Dec. 2009Dec. 2009

Oct. 2008Oct. 2008Oct. 2008Oct. 2008Business Business License

FTZ

First Sales First Sales delivery

Move to Move to TEDA

1 batch of pipe assys 1st batch of pipe assys delivered

ISO9001:ISO9001:2008 QMS

Rename Rename to EIPTJ

March 2009March 2009March 2009March 2009

VMI lVMI lLUB System lQLTY NBR1!

Jan. 2010 –Jan. 2010 –Dec. 2011

Page 10: Etola products henri manner 2011 v.2

1010

Selected List of Customers Etola is supplying

1. Etola China References

Page 11: Etola products henri manner 2011 v.2

1. Locations of Customers in China

Tianjin

Beijing

Dalian

Shanghai

1111

Page 12: Etola products henri manner 2011 v.2

2. Renergy CFL-SystemC = Cooling

F = FiltrationL = Lubrication

Sales l 2011-4-1 l Henri Manner

Page 13: Etola products henri manner 2011 v.2

Table of Contents

1. Application Introduction

2. Renergy CFL-Systems 3D

3. Q&A-Session

1313

Page 14: Etola products henri manner 2011 v.2

1. Introduction, Application WTCustomer Reference: VESTAS

1414

Nacelle l Pitch l Yaw Deliverables:Nacelle l Pitch l Yaw Deliverables:•• Hydraulic pipe assembliesHydraulic pipe assemblies•• Hydraulic hose assembliesHydraulic hose assemblies•• Piston accumulatorsPiston accumulators

Page 15: Etola products henri manner 2011 v.2

1. Introduction, Application Gear BoxCustomer Reference: SEW

1515

Factory 3

Heavy Series

up to 50 tons

Factory 2

M & ML –series

40.000 sqm Factory 1

1C & CN –series

40.000 sqm

Compact系列M 系列

CN 系列

Q系列行星

扭矩范围 kNm6 40 60 500 1200

SEW 减速电机TIANJIN PLANT

BASIC PRODUCT RANGE

Page 16: Etola products henri manner 2011 v.2

1616

Etola Deliverables: Hydraulic Pipe and Hose assemblies l Etola HFC-Systems

Cooling, Filtration and Lubrication System l Renergy CFL-Systems

Vendor Managed Inventory Service l Etola VMI-Service

1. Introduction, Application Gear BoxCustomer Reference: SEW

Page 17: Etola products henri manner 2011 v.2

2. Etola Engineering l CFL-Systems

Renergy CFL(LAC)-System (Air to Oil)

Production will start Q1FY11 in China

1717

Page 18: Etola products henri manner 2011 v.2

Renergy CFL(PWO)-System (Plate Cooler l Water to Oil)

Production will start Q1FY11 in China

1818

2. Etola Engineering l CFL-Systems

Page 19: Etola products henri manner 2011 v.2

3. Hydraulic Pipe Assembly

Sales l 2011-4-1 l Henri Manner

Page 20: Etola products henri manner 2011 v.2

Pipe Assy Table of Contents

1. General Introduction

2. Raw Materials Quality Control

3. Design & Engineering

4. Pipe Assembly Manufacturing

2020

Page 21: Etola products henri manner 2011 v.2

1. Introduction, Application WT2121

Nacelle l Pitch l Yaw Deliverables:Nacelle l Pitch l Yaw Deliverables:•• Hydraulic pipe assembliesHydraulic pipe assemblies•• Hydraulic hose assembliesHydraulic hose assemblies•• Piston accumulatorsPiston accumulators

Page 22: Etola products henri manner 2011 v.2

1. Introduction, Application WG&IG2222

Internal Piping (to lubricate the mesh and bearings) and external piping (to connect the lub system to gearbox)

For Bearings

Internal Piping System

External Piping System

Page 23: Etola products henri manner 2011 v.2

1. Introduction, Value Proposition

ETOLA VALUE PROPOSITION IN PIPE ASSEMBLIES:

High Quality Product1. Leak-Free Pipe Assembly

2. Very Accurate Bending

3. High Cleanliness Level

Value Added Processes 1. 3D-Customized Engineering

2. QA & QC Product Testing

3. Product Recall & Liability Insurances

4. On-Site Technical Support & After-Sales

Continuous Development & Training for Etola Company and People

= Attractive Price/Value Ratio

2323

Page 24: Etola products henri manner 2011 v.2

2. Raw Material Quality Control

ETOLA test and document all incoming raw materials and components in our own QC-Lab Incoming materials quality control

Destructive & Non-Destructive tests

DNV certificate of ISO 9001:2008

2424

Page 25: Etola products henri manner 2011 v.2

Hydraulic Pipes are tested vigorously throughout the whole supply chain Tests performed by the suppliers (incl. Chemical composition reports)

Third-Party tests in authorized institutions (incl. Chemical composition reports to verify the original material reports)

Final inspection by the ETOLA QA/QC Team(salt test and measure)

2. Raw Material Quality Control2525

Page 26: Etola products henri manner 2011 v.2

Salt Spray Testing for Pipes, Nuts, Cutting Rings and Pipe Fittings Salt spray test according to the ISO 9227-2006

2. Raw Material Quality Control2626

Page 27: Etola products henri manner 2011 v.2

ETOLA high quality steel pipes can meet the standards below:

Stainless Steel ASTM A269-2000

GB 14976-2002

Carbon Steel DIN 2391

2. Result High Quality Materials2727

Page 28: Etola products henri manner 2011 v.2

2. Result High Quality Materials

The Nuts, Cutting Rings, Support Sleeves and Pipe Fittings are imported from Germany and according to the ISO standard, there is a very high anti-corrosion capability due to international advanced techniques of zinc-nickel plating

37°flaring connectors according to the ISO 8434-2

the hour of appearance of red rust, according to the DIN 50021-SS salt spray test > 720 h

2828

Page 29: Etola products henri manner 2011 v.2

3. Design & Engineering2929

PROTOTYPE PROTOTYPE

SERIESSERIES

3 MW WIND 3 MW WIND

TURBINETURBINE

w/ 2 BLADES!w/ 2 BLADES!

Page 30: Etola products henri manner 2011 v.2

3. Design & Engineering

Prototype series ETOLA engineers participate to the prototype phase by making the

prototype piping on-site and then using 3D-measuring and AutoCADto prepare drawings for the serial production (5-Step Process)

3030

Page 31: Etola products henri manner 2011 v.2

3. Design & Engineering

From Customer’s General Drawing Etola engineers can transform General Drawings into 3D Drawings and

produce the required pipe assembly

3131

Page 32: Etola products henri manner 2011 v.2

3. Design & Engineering

We also design pipe assembly based on the customer's real pipe assemblies First we measure the pipes with high-precision 3D measuring machine

From the 3D-report our engineers do a bending feasibility study and after that make autoCAD drawings (radius 2 x OD)

3232

Page 33: Etola products henri manner 2011 v.2

4. Pipe Assembly Manufacturing3333

1)Cutting,Deburring, Precleaning

2) Bending

3) Measuring

4) Flaring

5) Measuring

6) Flushing

7) Measuring

8) WP & BP Tests

9) Marking

Page 34: Etola products henri manner 2011 v.2

4.1 Pipe Cutting, Deburringand Pre-Cleaning

Cutting Pipe with Belt Saw Machine

Deburring Machine

Pre-cleaning by Pneumatic Pellet Gun

3434

Page 35: Etola products henri manner 2011 v.2

4.2 Pipe Bending

We have an advanced high-precision computer-controlled automatic CNC bending machine and a professional pipe assembly team

3535

Page 36: Etola products henri manner 2011 v.2

4.2 Pipe Bending

Etola bending machine is imported from Europe and fully computer controlled thus making our pipe assemblies the most accurate in Northern-China

Bending Range: 6 – 42 mm (carbon steel)

Axis Accuracy: Size Accuracy +/- 0.05mm Angle Accuracy +/-0.05⁰

3636

Page 37: Etola products henri manner 2011 v.2

4.2 Pipe Bending

We can reach the following accuracy levels the ready pipe assemblies:

A length tolerance of ±1mm

An angle tolerance of ±1°

A roundness / Ovalization within 10%

3737

Page 38: Etola products henri manner 2011 v.2

4.3 Bend Pipe 3D-Measuring

High precision bending and measuring with 3D machine to verify the high accuracy

3838

Page 39: Etola products henri manner 2011 v.2

4.3 Bend Pipe 3D-Measuring

Etola controls bending with high-precision 3D testing machine which creates test reports that can’t be modified

You get what you have ordered!

3939

Page 40: Etola products henri manner 2011 v.2

4.4 Roll Flaring

ETOLA uses JIC 37⁰ Roll Flaring connecting technology to

ensure that the flaring joint's surface is of high quality

ETOLA flaring accuracy standard is 74⁰ +/- 0.1⁰

4040

Page 41: Etola products henri manner 2011 v.2

4.4 Roll Flaring Advantage

Roll-Flaring is very accurate technology. In cold forming the joint surfaces always stay in the desired position in relation to the axis of the pipe

4141

Page 42: Etola products henri manner 2011 v.2

4.4 Roll Flaring Advantage

Roll-Flaring flares the possible scratches away from the pipe’s joint surface

Roll-Flaring is key to LEAK-FREE pipe assembly!

4242

Page 43: Etola products henri manner 2011 v.2

4.5 Roll Flaring Measuring

Etola Measures roll flaring angles are in the required tolerances 74⁰ + 1.2⁰

4343

Page 44: Etola products henri manner 2011 v.2

4.6 Pipe Assembly Flushing

Etola provides inherently clean pipe assemblies

We have two flushing media oil and steamed water

4444

Page 45: Etola products henri manner 2011 v.2

4.6 Pipe Assembly Flushing

Flushing Cleanliness A cleanliness level of ISO4406 standard class 17/14/11 (or NAS1638

class 5) or even lower is achieved

4545

System ISO 4406 NAS 1638

Low pressure systems with traditional valves

18/15 - 20/17 9 - 11

High pressure systems with traditional valves

17/14 - 19/16 8 - 10

Proportional valve systems 16/13 - 18/15 7 - 9

Regulating valve systems 15/12 - 17/14 6 - 8

Servo valve systems 14/11 - 16/13 5 - 7

Extremely sensitive heavy duty systems

12/8 - 13/10 3 - 4

Page 46: Etola products henri manner 2011 v.2

46464.6 Cleanliness Class Requirement

Depending Valves in the System

Page 47: Etola products henri manner 2011 v.2

4.7 Cleanliness Measuring

Flushing report generated by Argos-Hytos particle measurement machine

After flushing the pipes are plugged

4747

Page 48: Etola products henri manner 2011 v.2

4.8 Working and Maximum Pressure Testing

ETOLA has in-house testing facilities to make Proof Pressure Tests and Burst Pressure Tests

Two test benches 0-700 bars

0-2100 bars

4848

Page 49: Etola products henri manner 2011 v.2

Performance Tests

Proof pressure test : 2 x WP

4949

4.8 Working and Burst Pressure

Page 50: Etola products henri manner 2011 v.2

Performance Tests

Burst pressure test : 4 x WP

5050

4.8 Working and Burst Pressure

Page 51: Etola products henri manner 2011 v.2

Performance Tests

Maximum torque test

5151

4.8 Working and Burst Pressure

Page 52: Etola products henri manner 2011 v.2

Proof Pressure and Maximum Pressure tests gives an ultimate safety factor for pipes used in high pressures and ensures that bursts in pipe assemblies due to sudden pressure peaks are avoided

5252

4.8 Working and Burst Pressure

Page 53: Etola products henri manner 2011 v.2

4.9 Pipe Marking

Finally, we mark with marking machine and pack in the plastic bag the pipe assembly before delivery to customers

Customers item number can be marked to the pipe

Every producted pipe assembly can be traced back to the production date

5353

Page 54: Etola products henri manner 2011 v.2

4. Hydraulic Hose Assembly

Sales l 2011-4-1 l Henri Manner

Page 55: Etola products henri manner 2011 v.2

Table of Contents

1. Introduction

2. Raw Materials Quality Control

3. Design & Engineering

4. Hose Assembly Manufacturing

5. Performance Tests

Page 56: Etola products henri manner 2011 v.2

1. Introduction

Etola VALUE PROPOSITION IN HOSE ASSEMBLIES:

High Quality1. 3D-Design & Tech Support

2. Manufacture

3. Swaging Quality Control

4. Flushing

5. Working & Maximum Pressure Testing

6. Hose Marking & Packing

Efficient Services1. On Time Delivery (D2D or VMI)

2. After Sales Service

Attractive Price/Quality Ratio

Everything Done In-House!

1/19/2010

5656

Page 57: Etola products henri manner 2011 v.2

2. Raw Materials Quality Control

Etola test and document all incoming raw materials and components in our own QC-Lab Incoming materials quality control

10-Step Procedure

Destructive & Non-Destructive tests

DNV certificate of ISO 9001:2008

1/19/2010

5757

Page 58: Etola products henri manner 2011 v.2

Salt Spray Testing for Hose Fittings and Ferrules Salt spray test according to the ISO 9227-2006

Anti-corrosion requirement per customers needs

2. Raw Material Quality Control

1/19/2010

5858

Page 59: Etola products henri manner 2011 v.2

2. Raw Materials Quality Control

Measure hose reelMeasuring hose-ID, hose-OD and wire-OD with caliper gauge

Hose-ID

Hose-OD

Wire-OD

Page 60: Etola products henri manner 2011 v.2

2. Raw Materials Quality Control

Measure the fittings tolerances Thread and Caliper Gauge as tools

Typical fitting types METRIC, JIC, BSP, SAE and ORFS

Page 61: Etola products henri manner 2011 v.2

3. Design & Engineering

Etola offers a dedicated engineering service, supply customers with product and value-added servicesWe have inhouse design capability, our engineers can design hose

assemblies according to customer’s drawings or specifications

Page 62: Etola products henri manner 2011 v.2

3. Design & Engineering

Whether you need to develop new products, re-design existing applications, or design completely new systems, Etola offers unparalleled engineering expertise

Page 63: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Etola hose assemblies manufactured by experienced professional operators according to strict production process

Page 64: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

MeasuringMeasuring Cutting Skiving SwagingSwaging MeasuringMeasuring FlushingFlushing Marking Marking

Page 65: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Etola manufacture hose assembly according to the following process chart strictly

1/19/2010

6565

Page 66: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

MeasuringWe measuring hose length and fittings before swaging

Page 67: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Cutting hose High technology cutting machine guarantee vertical section with hose

centerline

Page 68: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Skiving hose No skiving for 1SN, 2SN/ skiving for 4SP, 4SH

Page 69: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Etola uses the state-of-the-art swaging machine: Finn-power FP120

Crimping range (mm)

Crimping range (inches)

Crimping force (kN)

Crimping force (tonnage)

Crimpings / hour

Max. hose size (inches)

10 — 87 0.39—3.42 2800 280 2400 2.5

Page 70: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Swaging Hose is attached with fitting and sleeve and taken to the Finn-Power

swaging machine

The biggest size can reach 2 ¼ " and mass production is available

Page 72: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Hose Assembly Accuracy Control :

Fitting angle orientation tolerance +/- 3°

Length of the hose ≤ 300 mm, tolerance max +4.5mm

Length of the hose ≥ 300 mm, tolerance max +1.5%

Page 73: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Etola use oil as flushing media, we internally clean every hose assembly we produced The Ultra Clean system reduces downtime, extends pump-valve-filter

life

Page 74: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Flushing A cleanliness level of ISO4406 standard class 17/14/11(or NAS1638

class 5) or even lower is achieved

System ISO 4406 NAS 1638

Low pressure systems with traditional valves

18/15 - 20/17 9 - 11

High pressure systems with traditional valves

17/14 - 19/16 8 - 10

Proportional valve systems 16/13 - 18/15 7 - 9

Regulating valve systems 15/12 - 17/14 6 - 8

Servo valve systems 14/11 - 16/13 5 - 7

Extremely sensitive heavy duty systems

12/8 - 13/10 3 - 4

Page 75: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Flushing report generated by Argos-Hytos particle measurement machine

Page 76: Etola products henri manner 2011 v.2

4. Hose Assembly Manufacturing

Finally , Etola hose assemblies are marked by hot marker before delivery to customers Identification of the part number

Identification of manufacturer

Identification of production date

Hose assemblies will be fitted with plastic plugs and packed into plastic bag before delivery

Page 77: Etola products henri manner 2011 v.2

5. Performance Test

Etola has in-house testing facilities undertake Proof Pressure Tests and Burst Pressure Tests

1/19/2010

7777

Page 78: Etola products henri manner 2011 v.2

5. Performance Test

Relying on performance test, Etola hose assemblies are successful in avoiding the following pressure related problems: Hose abnormal burst

Coupling crimp improperly

Hose pinhole leaks

Coupling blow-off

Page 79: Etola products henri manner 2011 v.2

5. Performance Test

Etola hose assemblies work perfectly in high pressuresWe can reach up to 2100 bars in our pressure testing bench

Page 80: Etola products henri manner 2011 v.2

5. Performance Test

Proof Pressure and Maximum Pressure tests give an ultimate safety factor for hose assemblies used in high pressures and ensures that bursts in hose assemblies due to sudden pressure peaks are avoided

1/19/2010

8080

Page 81: Etola products henri manner 2011 v.2

5. Performance Test

Proof pressure test : 1.5x WP

1/19/2010

8181

Page 82: Etola products henri manner 2011 v.2

5. Performance Test

Burst pressure test : 4x WP

1/19/2010

8282

Page 83: Etola products henri manner 2011 v.2

8383

4. VMI-SERVICECONCEPT;CASE SEW

Sales l 2011-4-1 l Henri Manner

Page 84: Etola products henri manner 2011 v.2

OUTLINE

1. VMI Concept1. VMI Concept

2. How Does ETOLA Operate VMI? 2. How Does ETOLA Operate VMI?

3. ETOLA VMI Benefits to Customer3. ETOLA VMI Benefits to Customer

4. Statistics and Feedback From Customer4. Statistics and Feedback From Customer

5. Challenges and Continuous Improvement5. Challenges and Continuous Improvement

6. Wrap Up and Q&A Session

8484

Page 85: Etola products henri manner 2011 v.2

1. Etola VMI Concept

What is Etola VMI? Vendor Managed Inventory is a out-sourced service which performs customer’s daily working routines to supply the industrial parts (commonly categorized as C-Parts) to satisfy the production line needs.

8585

Page 86: Etola products henri manner 2011 v.2

2. Business Case l SEW IG8686

Factory 3

Heavy Series

up to 50 tons

Factory 2

M & ML –series

40.000 sqm Factory 1

1C & CN –series

40.000 sqm

Compact系列M 系列

CN 系列

Q系列行星

扭矩范围 kNm6 40 60 500 1200

SEW 减速电机TIANJIN PLANT

BASIC PRODUCT RANGE

Page 87: Etola products henri manner 2011 v.2

1. How Does Etola Operate VMI? l Planning Period SEW Tianjin Plants

SEW-IP VMI Implementation Record

No. Start Date End date Steps Responsible Person/Participant

1 2009-12-01 2009-12-07 VMI parts list clarification & confirmation, including intake quantity for last 12 months Customer Mgr.

2 2009-12-07 2009-12-27 VMI implementation proposal given to customer Customer Mgr.

3 2009-12-07 2009-12-07 Visit & check customer's layout for VMI parts in workshop Customer Mgr.

4 2009-12-27 2010-01-29 Prepare bins and other necessary tools for VMI project e.g. Label & Bin Local buyer

5 2010-01-04 2010-01-04 Kick off meeting held by Customer's GM

Customer Mgr./Warehouse Sup./VP/GM-Etola VP-

Production, Purchasing Mgr./Assy. Manager/Warehouse

Mgr.-Customer

6 2010-01-14 2010-01-29 To discuss stocktaking and make schedule Warehouse Sup.

7 2010-02-04 2010-02-04 To discuss the concerns with customer when taking stocktaking Warehouse Sup./Customer Mgr./VP

8 2010-02-07 2010-02-22 Stocktaking in Customer side Customer Mgr./Warehouse operators

9 2010-02-25 2010-02-25 Second meeting to review the first stage work by management members from both parties

Customer Mgr./Warehouse Sup./VP-Etola

VP-Production, Purchasing Mgr./Assy.

Manager/Warehouse Mgr.- Customer

10 2010-02-26 2010-03-01 Stock transfer from customer to Etola Truck driver

11 2010-03-01 2010-04-09 Start to feed the bins by Etola VMI Specialist, but information transfers via paper and manually VMI Specialist/Customer Service Specialist

12 2010-04-09 2010-04-16 Testing of information collecting via wireless terminal and e-mail the replenished parts list to EtolaIT Engineer./VMI Specialist/Customer Service

Specialist/Customer Mgr./VP

13 2010-04-16 Now Daily routine run VMI Specialist/Customer Service Specialist/Customer

Mgr.

8787

Page 88: Etola products henri manner 2011 v.2

2. How Does ETOLA Operate VMI? l Business Case SEW China

ETOLA assigns 2 operators in SEW-IP production floor, totally 3 facilities, F1

plant, F2 plant, F3 plant.

8:30 – 10:00 am: ETOLA operators check the allocated responsible areas to replenish the short quantities

10:00 am: Receive the shipment coming from Etola and check at customer’s warehouse

10:00am – 12:00am: Items replenishment, feeding bins

15:00pm: Start to check the short items and transfer the shortage list to Etola internal staff.

16:00pm – 17:00pm

Replenish the items to the bins and balance the short parts from different location

* Operational manual

8888

Page 89: Etola products henri manner 2011 v.2

8989

2. How Does ETOLA Operate VMI?

Page 90: Etola products henri manner 2011 v.2

3. ETOLA VMI DELIVARABLES to CUSTOMER

1. Consistent QUALITY

2. EASY for CUSTOMER

+Removes Unnecessary

Work Processes

3. Costs SAVINGS!!!

9090

Page 91: Etola products henri manner 2011 v.2

3.1 ETOLA VMI Competitive Advantage; Quality Nbr.1 !

Quality Management System ISO9001:2008

Destructive & Non-Destructive Tests for all incoming C-parts. ETOLA conducts strict QC-procedures to guarantee your C-parts are qualified!

C-Parts Testing Equipment

Salt Spray Corrosion Tests

Coating Tests

Hardness Tests

Tensile Tests

Thread Tests

9191

Page 92: Etola products henri manner 2011 v.2

1. Visual Inspection Rust or corrosion

incorrect plating

Wrong parts or mixed parts etc

2. Dimension Measurement Based on DIN + ISO standards and

customers special application requirements

3. Testing l Destructive Tests Tensile and Hardness tests

Salt Spray Corrosion Tests

coating and plating thickness measurement

4. AQL (Accepted Quality Level) and

Visual inspection criteria Based on ISO 3269 and customer’s needs

3.1 Fasteners Quality Control

Page 93: Etola products henri manner 2011 v.2

3.1 Fasteners Quality Control

DIN

STANDARD

ETOLA

REPORT

Page 94: Etola products henri manner 2011 v.2

Simplifying Customer’s Upstream

Supply Chain Processes

9494

3.2 ETOLA VMI = EASY FOR CUSTOMER!

Page 95: Etola products henri manner 2011 v.2

Minimizing Customer’s Purchasing, Warehouse and Assembly Operations Lead Times SEW purchasing department can save time from releasing purchase

order (also SEW doesn’t have to do internal time-taking processes before PO), getting order confirmation & clarification from Etola, which saves averagely 1 week to go through above process. Also, minimizing the paperwork!

No need to search parts from warehouse, just pick up directly from KANBAN bins, e.g. some items cannot be easily found by assembly operator, ETOLA VMI operators are able to provide them and send to the position immediately.

ETOLA has a good product knowledge so the sales technical support is able to give a very good help to customer’s relevant departments (e.g. purchasing, warehouse and production)

Maximize production efficiency by cutting unnecessary work

We are now handling total 443 items for SEW VMI. 9595

3.2 ETOLA VMI = EASY FOR CUSTOMER!

Page 96: Etola products henri manner 2011 v.2

98%99%

97% 98% 98%

100% 100% 100% 100% 100% 100% 100% 100%

50%

60%

70%

80%

90%

100%

110%

MAR APR MAY JUN JUL AUG SEP OCT

OTD - Normal parts OTD - VMI parts

On Time Delivery Rate – Normal Parts VS. VMI Parts

* Above OTD rate for normal parts are calculated by Customer every month

9696

3.3 ETOLA VMI Benefits to Customer

Page 97: Etola products henri manner 2011 v.2

2,373 169,418.86

-

20,000

40,000

60,000

80,000

100,000

120,000

-

500

1,000

1,500

2,000

2,500

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

Normal order items VMI order items Normal order Qty. VMI order Qty.

3.3 ETOLA VMI Benefits to Customer

Page 98: Etola products henri manner 2011 v.2

Save Warehouse Space

=Etola assigns 500 ㎡ to stock VMI items and a professional team to manage these parts.

Our customer save 500 ㎡ space and all the cost

incurred !

OUR INPUT = YOUR

SAVING

ETOLA CUSTOMER

9898

3.3 ETOLA VMI Benefits to Customer

Page 99: Etola products henri manner 2011 v.2

Shift the risk of inventory from customer to ETOLA

Our customer will enjoy significant reduction in cash spent on safety stock, managing stock, and also warehouse area allocation

Also, indirect purchasing costs are reduced significantly. This is what in Finland and Sweden we call efficient logistics management – nowadays coming more important in China as salary levels rise especially in the supervisor and mgmt level!

9999

3.3 ETOLA VMI Benefits to Customer

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Cost saved in 7 Months(Mar.01’2010-Sep.30’2010)

1.Labor Cost RMB89,600

2.Transportation Cost RMB20,2803.Warehousing Cost RMB105,0004.Stock value reduced RMB2,800,000

* Cost Calculation sheet

Dramatic Cost Savings

Total Tangible Cost Saved for Customer: RMB 3,084,100

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3.3 ETOLA VMI Benefits to Customer

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100% 100% 100% 100% 100%

70%

30%

50%

20%30%

Labor cost Transportation cost

Mgmt cost Inspection Warehousing cost

Non-VMI After VMI

What We Saved for Our Customer

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3.3 ETOLA VMI Benefits to Customer

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4. Happy People at Work

Save a lot of time to from the customer production line l assembly managers to focus on their core work; managing ops

Creates happiness w/in customers WH-operators reduces employee turnover and thus stabilizing work processes

0%

20%

40%

60%

80%

100%

120%

Sharp contrast

Non-VMI

After VMI

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4. Happy People = Efficiency

In one of our customer’s factory - F2, after VMI Service, to assembly one ML90 type gear box can save almost 30% ~ 50% time.

In other words, almost 100% efficiency increase!

Before VMI - 1pc After VMI - 2pcs

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5. Challenges and Improvements

Challenge Not enough information about customer’s production plan, which will

lead to urgent requirement especially after 17:00pm for 2nd shift.

Improvement solution Hope to share more information w/in customer and ETOLA, such as

production plan and accurate forecasts

Provide an isolated area (50m2 is enough), ETOLA will store some parts according to usage frequency

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6. Benefits Wrap Up

What benefits can you get from Etola VMI ?1. Very easy for customer because Etola will fill the bins and no POs issuing2. Cuts drastically indirect costs in purchasing and work load and thus

overall costs3. Lower handling costs at every stage to enhance competitiveness4. Minimizes customer’s inventory value and need for the warehouse space5. Etola will together with customer optimize the capital spending to the

inventory6. Technical and logistic support from Etola sales team7. Etola will together with customer optimize the upstream supply chain8. Stabilize customer’s manufacturing through well-organized parts

replenishments9. Etola a partner devoted to continuous improvement together with

customer10. Etola a Trustworthy and Solid Partner geared towards long-term

partnerships!

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XIE XIE! THX! KIITOS!

Sales l 2011-4-1 l Henri Manner