HIGIS 3/ﾌﾟﾚｾﾞﾝﾃｰｼｮﾝ資料/J GrayA and Events/Best in... · Jamie Foster Why were we best start up !!! Hitachi Rail Europe Ltd. Procurement. 23/01/2014 ... For

© Hitachi Rail Europe, Ltd. 2013. All rights reserved.

Jamie Foster

Why were we best start up !!!

Hitachi Rail Europe Ltd. Procurement.

23/01/2014

© Hitachi Rail Europe, Ltd. 2013. All rights reserved. 1

Who is Hitachi?

• Founded 1910

• 320,000+ Employees

• 963 countries

• 28 Languages


Hitachi Rail

2

The Hitachi Rail business covers many aspects of the rail industry

• In 2012 we won a contract to

build 596 cars with the first being

tested in 2015 and the rest of the

fleet commences deployment in

2017

• In addition to this we have also

won an additional 270 cars and

are bidding on a number of

projects

• This has given us over £6bn of

orders and secured our

production through to the end of

the century

• Also bidding on new contracts,

products and services


Everyone loves a picture of a train so....


We are building a UK manufacturing facility

• Factory is being built in Newton Aycliffe,

County Durham

•Capacity of 20 cars per month or 35 cars

per month working 2 shifts

•Manufacture, assembly and testing

facilities with increasing scope including

R&D

• 700+ new jobs are to be created

•A development such as this requires

world class employees and to this end

Hitachi is working with Sunderland

University and Bishop Auckland College

to apply for a UTC in the Newton Aycliffe

area

•Detailed design is complete for the

factory and test track

• Tendering phase started for factory and

test track

•Recruitment of core team started

•Archaeology work has started on site


With this challenge ahead of us Hitachi started to build a procurement team

Where did we start? What should we do?

• When we started we

thought we needed to

do everything

• We were going to lead

everything and create

new processes, tools,

ways of working

• Danger of telling

everyone how to do

everything

• Risk of alienating

ourselves and

standing alone


We asked for some help to understand where we should focus

We needed to change our focus

Procurement needed to become a “Decision Enabler NOT a Decision Maker”


This did not mean simple and easy

7

• Our principles were

• Whatever we do must be effective and followed through

• We need to be ahead of the business... not miles, just

ahead

• Create value and be responsive to the business needs

• Be able to change as we go through the different stages

of development

For us simple is smart!


Procurement’s Market Engagement Portal

We have engaged with the market to support our strategic aim of

developing local suppliers and the local economy

The UK and part of Continental Europe

372 81 101 36 56 73

Supplier Category Overview

85

147 158

134 94

85

16

Factory

Build

IndirectProduction

Level 1

Location

Category of Spend Hitachi Supplier Portal


New Product Introduction Management

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• We surveyed our customers and suppliers what they wanted from Hitachi

• The overwhelming feedback was around communications and follow up

• We create a new product introduction management process which whilst

simple is proving effective

Action 2

Conduct risk

evaluation and

classify suppliers

Action 3

Create Issue

Resolution Process

Action 4

Initial face to face

meetings (Part I)

Action 1

Establish

supplier contact

database

Action 5

Initial face to face

meetings (Part II)

NPIM Process

StrategicPre-defined

meetings with

senior attendance

and formalised

agendas addressing

high-level progress

and strategic topics

ProgressMonthly update

meetings / calls to

review progress and

address any risks /

issues

Initial Meetings

Q1 Meeting Q2 Meeting Q3 Meeting Q4 Meeting

Monthly meetings


meetings with

senior attendance

and formalised

agendas addressing

high-level progress



meetings / calls to

review progress and

address any risks /

issues

Initial Meetings


Monthly meetings


meetings with

senior attendance

and formalised

agendas addressing

high-level progress



meetings / calls to

review progress and

address any risks /

issues

Initial Meetings


Monthly meetings

Ongoing management

Monthly meetings


meetings with

senior attendance

and formalised

agendas addressing

high-level progress



meetings / calls to

review progress and

address any risks /

issues

Initial Meetings


Ongoing management


Provides our business with a view of progress and a set of forward

looking indicators to support our risk management

Our KPI dashboard is market leading

b

Process Management

Programme Progress Tracking

Risk Management and Market Trends

Programme Budget Tracking


What’s Next for us

11


Lessons Learnt

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I have worked for many mature organisations and think that I could have

applied these lessons learnt

1. Keep it simple – we often overcomplicate things

2. Take the time to understand where the rest of the

business is in its evolution

3. We all think procurement is the centre of the world

but sometimes we need to check where we are in the

process

4. Stop chasing quick wins they are just the first steps

5. Listen to your customer

Documents

HIGIS 3/ﾌﾟﾚｾﾞﾝﾃｰｼｮﾝ資料/J GrayA and Events/Best in... · Jamie Foster Why were we best start up !!! Hitachi Rail Europe Ltd. Procurement. 23/01/2014 ... For