2011_1_Daimler Supplier Magazine_eng
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2011_1_Daimler Supplier Magazine_eng
DAIMLER SUPPLIER MAGAZINE 01|2011 – A MAGAZINE FOR SUPPLIERS AND ASSOCIATES OF DAIMLER AG Daimler SUPPLIERMAGAZINE 01 l 11 As part of the Daimler Key Supplier Meeting on March 17, 2011, 14 supplier partners from all Purchasing divisions were honored with the 2010 Daimler Supplier Awards. Read more starting from page 04. Contents Daimler AG Contents Daimler Supplier Magazine 01|2011 Cover Story 04 Highest Praise Sustainability & Integrity 40 The 2011 Daimler Key Supplier Meeting 08 10 Success Stories The Mannheim Center of Competence for Zero-Emission Mobility (CZM) 45 13 “Dos and Don’ts” of compliance-consistant acting for suppliers Top Performers Tools & Processes Best Results 46 Extensive development of the Daimler Supplier Portal Outstanding Locations Dinner & Dialog 48 Encounters and discussions at the Daimler Key Supplier Meeting 18 Fascination, Perfection and a Passion for Detail 52 Product Projects 54 Top C with Coupé 56 A Global Bestseller 36 Cult und Magic The Redford Supplier Mall provides outstanding production opportunities 58 Successful Localization Enhancing production of the Sprinter in Argentina 61 Supplier Strategy South Africa Chances and challenges for the supplier industry in South Africa People Places of Interest Making Success Sustainable Trends At Home in India Under the name BharatBenz Daimler AG builds light- and heavy-duty trucks 02 America, again the Land of Opportunity The new Mercedes-Benz SLK is a trendsetter in its third generation too Interview with Matthias Gründler and Dr. Klaus Zehender 38 Optimum Materials Flow The Plant Consolidation Center (PCC) in Malsch near Rastatt From procurement to manufacturing and in the markets: The new Fuso Canter 30 Maximum Efficiency For 50 years, the Hedelfingen plant produces automatic transmissions The updated C-Class and the new C-Class Coupé 28 Extreme Climate Zones The climatic wind tunnels at Mercedes-Benz Technology Center Sindelfingen The Daimler Supplier Award sculpture – designed by Mercedes-Benz Design 22 By Users, for Users IPS honors three suppliers with the 2010 Daimler Supplier Award The winner of the 2010 Special Award “Innovation” 14 Dos and Dont‘s PMC awards five winners from Germany and the U.S. The winners of the 2010 Daimler Supplier Awards by TG/P 12 Concentrated Skills 62 “Stick With What You’ve Learned” The Gottlieb Daimler Birth House in Schorndorf Editorial Daimler Supplier Magazine 01|2011 Editorial To our Readers, The first quarter of 2011 saw numerous changes at the senior management level of Daimler Procurement: In November 2010, Stefan Buchner took over as Head of the newly established unit “Global Powertrain and Procurement Trucks and Buses” (TG). The new organization combines the units Powertrain, Global Production Planning and Procurement Commercial Vehicles. In January Matthias Gründler succeeded Mr. Buchner as Head of “Procurement Trucks and Buses” and also took over responsibility for the strategic orientation of “Global Powertrain”. At the passenger cars procurement unit, Dr. Klaus Zehender took over as Head of Procurement Mercedes-Benz Cars and Vans in March of this year. He follows Frank W. Deiss, who as President & CEO heads up the Sino-German joint venture “Beijing Benz Automotive Co., Ltd.” in China. Global strategy is and will remain an important factor in the success of our company. Features in this issue include a report on the introduction of the BharatBenz brand. Another section is devoted to the start of production of the updated Mercedes-Benz C-Class and the C-Class Coupé. Long before new models are launched on the market, they have to pass numerous tests conducted under extreme climatic conditions. From the summer of 2011, it will be possible to simulate these conditions for the first time irrespective of season and climatic zone in the new climatic wind tunnels immediately adjacent to the Mercedes-Benz Technology Center in Sindelfingen. Here at Daimler Procurement, we have once again set ourselves a large number of objectives this year, and we can only achieve these together with you. For this reason in particular, the Daimler Key Supplier Meeting on March 17, 2011 was an important milestone: On the one hand, it was an opportunity to review our collective successes and to thank our supplier partners for their outstanding performance during the past year. On the other hand, it was with great pleasure that we honored our best 14 suppliers with the Daimler Supplier Awards 2010 and made use of the evening to conduct intensive face-to-face discussions. To ensure the success of important performance, there is a need for clear rules governing cooperation – particularly in a global environment. In this respect, integrity plays a particularly important role. We also want to deliver a top performance in this area and promote transparency. For us, compliance, business ethics and sustainability are the values we live by every day and we expect the same high standards of ourselves as we do of our suppliers. Reconciling business with social equality and the environment is not only a key factor in ensuring sustainable success – it is also our duty to future generations. We look forward to taking on the upcoming projects and plans together with you, and hope you enjoy reading this issue. Kind regards MATTHIAS GRÜNDLER DR. KLAUS ZEHENDER WENDELIN WOLBERT Vice President Vice President Vice President Procurement Trucks and Buses Procurement Mercedes-Benz Cars and Vans International Procurement Services Daimler AG Daimler AG Daimler AG 03 Cover Story Daimler Supplier Awards 2010 Daimler AG Highest Praise As part of the Daimler Key Supplier Meeting on March 17, 2011 at the Stuttgart Mercedes-Benz Center, 14 suppliers from all Purchasing divisions were honored with the 2010 Daimler Supplier Awards. STUTTGART | GERMANY 48° N | 9° E 04 Daimler Supplier Magazine 01|2011 Cover Story Daimler Supplier Awards 2010 01 450 representatives of Daimler‘s key suppliers took part in this year’s Daimler Key Supplier Meeting. 05 Cover Story Daimler AG Daimler Supplier Awards 2010 01 02 03 04 01 Andreas Renschler, Member of the Daimler AG Board of Management, responsible for Daimler Trucks. 02 Dr. Thomas Weber, Member of the Daimler AG Board of Management, responsible for Group Research & MercedesBenz Cars Development. 03 Wilfried Porth, Member of the Daimler AG Board of Management, responsible for Human Resources. 04 Dr. Wolfgang Bernhard, Member of the Daimler AG Board of Management, responsible for Production and Procurement Mercedes-Benz Cars and the Mercedes-Benz Vans division. 06 Cover Story Daimler Supplier Magazine 01|2011 S ome events are designed to spotlight the collaboration between Daimler AG and its suppliers. These include the Daimler Key Supplier Meeting, where the Daimler Supplier Award is presented – and the March 2011 event was very special. Following the tragic events in Japan, all those in attendance seemed closer to one another. A moment of silence was held before the event to show solidarity with those in Japan, and to honor the memory of the victims. Andreas Renschler, Member of the Daimler AG Board of Management, responsible for Daimler Trucks, expressed his deepest sympathy on behalf of the company. “We are all in shock. Positive outlook Andreas Renschler also discussed numerous new product projects in the area of heavy commercial vehicle motors, along with trucks and buses just before the start of production. He drew guests’ attention in particular to the global growth perspectives in the commercial vehicle business. “We need you as our partners to enter new markets. And to develop new products, we need your core competencies and your new ideas!” Wilfried Porth, Member of the Daimler AG Board of Management, responsible for Human Resources, stressed that joint success could not be measured in mere numbers. “We are confident that we can succeed on the market only if we do this with integrity and sustainability. We don’t just stand behind clean products, but also clean business.” Daimler AG’s appreciation goes out to the performance of all suppliers present. Honors for top performance Together with the three heads of the operational procurement departments, the Board of Management members gave Daimler Supplier Awards 2010 to 13 suppliers. In so doing, the company acknowledged the companies’ top performance, determined using an internationally uniform rating system. The foundation is set forth in the philosophy of the Daimler Supplier Network cooperation model. In addition to the value drivers of quality, cost, technology and supply, fairness, reliability and credibility were among the decisive ratings criteria. Dr. Thomas Weber, Board Member, responsible for Group Research & Mercedes-Benz Cars Development, also handed out the Special Award “Innovation” – a very special honor for outstanding progress in technology and innovation. Daimler Supplier Awards 2010 DAIMLER SUPPLIER AWARDS 2010 THE WINNERS PROCUREMENT MERCEDES-BENZ CARS AND VANS And I know that hardly anyone here remains unaffected by the situation in Japan. In recent days, we’ve been very worried about our friends, colleagues and partners.” Renschler added that Daimler would make every effort to support its employees in Japan and the Japanese partners. Daimler is the only German automotive manufacturer with production in Japan and employs about 13,000 there with its commercial vehicle subsidiary Fuso. Top management thanks its suppliers Now more than ever, close contact among partners is decisive, stressed Dr. Wolfgang Bernhard, Daimler AG Board of Management member responsible for Production and Procurement Mercedes-Benz Cars and the Mercedes-Benz Vans division. “This is why we are so pleased that you’ve joined us here today at the Mercedes-Benz Center in Stuttgart.” 450 representatives of Daimler’s key suppliers took part in this year’s Daimler Key Supplier Meeting. With regard to the 2010 financial year, Daimler’s top management thanked its suppliers for their outstanding commitment and provided a preview of future projects and challenges. Dr. Wolfgang Bernhard spoke about the continuation of the passenger car product offensive at Mercedes-Benz in 2011: “Let us continue our cooperation for coming production runs – we have the best opportunities, thanks in particular to our very attractive product portfolio – for great success.” EXTERIOR Asahi Glass Co., Ltd., Japan INTERIOR F.S. Fehrer Automotive GmbH, Germany ELECTRICS/ELECTRONICS Mitsubishi Electric Corporation, Japan CHASSIS Rausch & Pausch GmbH, Germany POWERTRAIN Schaeffler Group Automotive, Germany PROCUREMENT TRUCKS AND BUSES EXTERIOR Consolidated Metco, Inc., USA INTERIOR IWN GmbH & Co. KG, Germany ELECTRICS/ELECTRONICS East Penn Manufacturing Co., Inc., USA CHASSIS Very optimistic for 2011 Even if the winners were the main focus of the event, Daimler AG’s top management stressed in personal conversations that they greatly appreciated the performance of all suppliers present. Given that the 2010 financial year began with uncertainty for the entire automotive industry but ended on a very positive note, the air was abuzz with optimism on the evening of the Daimler Key Supplier Meeting – not just for Daimler AG but for its supplier partners. Accuride Corporation, USA POWERTRAIN Federal-Mogul Corporation, USA INTERNATIONAL PROCUREMENT SERVICES CONSTRUCTION AND FACILITY MANAGEMENT Stahlbau Heil GmbH & Co. KG, Germany MARKETING, IT, GENERAL GOODS AND SERVICES JUNG von MATT AG, Germany MANUFACTURING EQUIPMENT AND SERVICES EMAG Holding GmbH, Germany SPECIAL AWARD “INNOVATION” Automotive Lighting GmbH, Germany 07 Cover Story Daimler AG Daimler Supplier Awards 2010 Success Stories Procurement Mercedes-Benz Cars and Vans honors five winners from the USA and Germany. PROCUREMENT MERCEDES-BENZ CARS AND VANS 01 DAIMLER SUPPLIER AWARDS 2010 EXTERIOR Asahi Glass Co., Ltd. Head office: Tokyo, Japan Employees: approx. 50,000 Product program: flat glass, automotive glass, display glass, electronics & energy, chemicals, ceramics www.agc.com INTERIOR F.S. Fehrer Automotive GmbH Head office: Kitzingen, Germany Employees: approx. 3,000 Product program: seat cushions, seat modules, CC modules www.fehrer.com ELECTRICS/ELECTRONICS Mitsubishi Electric Corporation Head office: Tokyo, Japan Employees: approx. 110,000 Product program: technology for the automotive industry, test labs, industrial applications, cooling systems, control systems, discharge machining systems, semiconductors, photovoltaic systems, imaging systems www.mitsubishielectric.com CHASSIS Rausch & Pausch GmbH Head office: Selb, Germany Employees: approx. 215 Product program: solenoid valves and solenoid valve systems for hydraulic and pneumatic applications www.rapa.com Asahi Glass Co., Ltd. Comfort, energy control, safety and aesthetics: glass has to fulfill an increasing range of requirements in the automotive industry today. Asahi Glass Co., Ltd. stands for innovative products and processes generated from sustainable research in advanced glass technology. With decades of experience, 200 subsidiaries, branches in 20 countries, an international sales network and almost 50,000 employees worldwide, Asahi Glass Co. is pursuing its growth course in the corporate units of flat glass, automotive glass, display glass, electronics & energy and chemicals. As a Daimler AG partner, Asahi Glass Co., Ltd. receives the Daimler Supplier Award 2010 from Procurement Mercedes-Benz Cars and Vans in the “Exterior” category. “We are proud of the world-class level of Asahi Glass in our core technologies,” says Kei Yonamoto, Senior Executive Officer and Automotive Vice President. Together they strive for technical and operational excellence. Dr. Klaus Zehender, Head of Procurement Mercedes-Benz Cars and Vans, confirmed this success. “The strategic partnership between Asahi and Daimler is based on mutual trust. This business partner did not only perform exceptionally well in 2010.” The prerequisites for further successful cooperation are there. According to Zehender, “with this glass, our vehicles do not just look fantastic, they also comply with the highest safety-relevant requirements.” POWERTRAIN Schaeffler Group Automotive Head office: Herzogenaurach, Germany Employees: approx. 65,000 Product program: engine systems, chassis systems www.schaeffler.de 01 Dr. Wolfgang Bernhard and Dr. Klaus Zehender, Head of 02 premium and luxury vehicles. At the same time, Fehrer is furthering the series production of high-quality seat modules and composite components such as structural seating components. “Fehrer understands product quality holistically,” said Dr. Bernd Welzel, Member of the Management Board, explaining the company philosophy. “This means that only once comfort, safety, functionality and design complement one another is the result perfect.” This is how F.S. Fehrer Automotive GmbH meets the high expectations of Daimler AG – and those of the customers. For this reason, F.S. Fehrer Automotive GmbH receives the Daimler Supplier Award 2010 in the “Interior” category. Procurement Mercedes-Benz Cars and Vans (left), hand over the Daimler Supplier Award 2010 to Kei Yonamoto, Senior 08 F.S. Fehrer Automotive GmbH 11 years before Carl Benz invented the first car, F.S. Fehrer Automotive GmbH was founded. In 1875, the company with its head office in Kitzingen in Lower Franconia was obviously not yet producing parts for the automotive industry. However, one of the first customers in this area in the 1920s was: Gottlieb Daimler. The family-owned company managed by the fourth generation now has 22 locations worldwide: in Germany, the USA, Czech Republic, Hungary, South Africa, India and China. In this way, F.S. Fehrer Automotive GmbH distinguishes itself through specifically customer-oriented service centers and worldwide manufacturing plants located close to the partners. Their spectrum of products includes vehicle seat cushions, seat modules such as center armrests or headrests, trim for roofs and sliding roofs. Particularly noteworthy are the innovative cushion technologies that Fehrer has developed. Their products “3D foam” and “bluefoam” are now important components of Daimler AG’s 02 Dr. Klaus Zehender and Dr. Wolfgang Bernhard felicitate Executive Officer and Vice President Automotive Asahi Dr. Bernd Welzel, Member of the Management Board of Glass Co., Ltd. F.S. Fehrer Automotive GmbH. Cover Story Daimler Supplier Magazine 01|2011 Mitsubishi Electric Corporation Today, electronics are an essential part of the most varied areas of life. Their effects are so familiar to us that we use them as a matter of course without taking particular note. The global player Mitsubishi Electric Corporation has played a significant role in shaping these developments in electronics. With over 110 locations for research and development, production and sales worldwide and almost 110,000 employees, it is the largest company that has arisen from the legendary Mitsubishi Holding, founded in 1870. In addition to technology for the automotive industry, the wideranging product portfolio includes test labs, Rausch & Pausch GmbH RAPA is the catchy abbreviation of the two company founders Hans Rausch and August Pausch in line with the spirit of the “Golden Twenties”. Even today, over 80 years later, the company is managed by the third and fourth generations as a purely family business. Thanks to its customer service, capacity for innovation, flexibility and the quality of its products, Rausch & Pausch GmbH with its head office in Selb, Germany enjoys an excellent reputation among many internationally renowned companies. RAPA has already been working with Daimler AG in the field of valve systems for chassis construction for a quarter of a century. You usually cannot see Rausch & Pausch GmbH’s special competency, but you can feel it. Together with Daimler AG’s specialist departments, RAPA develops solenoid valves and solenoid valve systems for hydraulic chassis and air suspensions – the aim is to make the characteristics of premium vehicles even more comfortable, even more effortless and even safer. “Rausch & Pausch GmbH has been active in several innovative sectors with first-class products for many years. Our cooperation with Daimler AG in the past has been exceptionally 03 industrial applications, cooling systems, control systems, discharge machining systems, semiconductors, photovoltaic systems and systems for visual information. As one of Daimler AG’s strategic partners, Mitsubishi Electric Corporation has developed and produced future-oriented high-tech components over the past years. The foundation for the by now wide-ranging and successful collaboration between Daimler AG and Mitsubishi Electric Corporation was laid a few years ago with the starter motor for the smart. Today, the focus is placed on one of the most important and most complex control systems: the head unit, for example for the new generation of the C-Class. For always representing the state of the art technology and fulfilling Daimler AG’s requirements flexibly and quickly, the large-scale enterprise Mitsubishi Electric Corporation receives the Daimler Supplier Award 2010 from Procurement Mercedes-Benz Cars and Vans in the “Electrics/Electronics” category. 04 successful – and this will not change in the future,” promises owner and Managing Director Horst Pausch. The Daimler Supplier Award 2010 from Procurement Mercedes-Benz Cars and Vans in the “Chassis” category is for him a confirmation of the many years of cooperation and also an incentive for future projects together. 03 Keiichi Nakajima, Member of the Management Board of 04 Horst Pausch, owner and Managing Director of Rausch & Mitsubishi Electric Europe B.V., accepts congratulations by Pausch GmbH, together with Dr. Wolfgang Bernhard and Dr. Wolfgang Bernhard and Dr. Klaus Zehender. Dr. Klaus Zehender. Daimler Supplier Awards 2010 05 Schaeffler Group Automotive The Schaeffler Group develops and produces high-precision products for everything that moves: for machines, systems and vehicles as well as for aviation and aerospace. The company, with its head office in Herzogenaurach, Germany, is among the largest in the automotive supplier industry. 65,000 people work for the Group, with its three strong brands, INA, FAG and LuK, in over 180 locations throughout the world – 4,800 work in the research and development areas alone. For many decades, INA products have been well known for creative application solutions as well as the highest engineering and production competency. The established brand FAG, which is over 100 years old, has been part of the Schaeffler Group since 2001. For over 40 years, LuK has been a synonym for innovative strength, customer orientation and quality for numerous vehicle powertrain products. The Schaeffler Group Automotive recently invested in new research and development centers in Asia and North America. Approximately 1,100 Schaeffler inventions are filed for patent each year. For Daimler AG, the Schaeffler Group Automotive is a leading innovator for components in the powertrain area. The company has proved its innovation in many cases: for example when developing the dual-mass flywheel, which makes a large contribution to reducing fuel consumption and CO2 emissions in Mercedes-Benz vehicles. With these and other technologies, the company has contributed considerably to the success of Daimler AG in the 2010 business year and therefore receives the Daimler Supplier Award from Procurement Mercedes-Benz Cars and Vans in the “Powertrain” category. 05 Dr. Jürgen M. Geißinger, Chairman of Schaeffler GmbH, with Dr. Wolfgang Bernhard and Dr. Klaus Zehender. 09 Cover Story Daimler AG Daimler Supplier Awards 2010 Top Performers Five supplier partners receive the Daimler Supplier Award 2010 from Procurement Trucks and Buses. PROCUREMENT TRUCKS AND BUSES DAIMLER SUPPLIER AWARDS 2010 EXTERIOR Consolidated Metco, Inc. Head office: Vancouver, WA, USA Employees: approx. 3,000 Product program: castings, hubs, brake drums, interior paneling www.conmet.com INTERIOR IWN GmbH & Co. KG Head office: Bielefeld, Germany Employees: approx. 140 Consolidated Metco, Inc. Lower operating costs, reduced time off the road, higher profitability: these are the key criteria for truck customers. The commercial vehicle division at Daimler AG and its suppliers do everything to fulfill these criteria and even to exceed them. Consolidated Metco, Inc. (ConMet) is known throughout the entire truck and trailer industry for its evident expertise in the development of lightweight components for heavy-duty trucks. ConMet is Daimler Trucks North America (DTNA)’s main supplier of injection-molded parts for almost all platforms. ConMet also supplies additional castings, hubs and brake drums. Impressive solutions are developed in all areas to simultaneously improve the performance, fuel efficiency and payload of trucks using stable lightweight components. From the head office in Vancouver, WA, in northwest USA, Consolidated Metco manages six factories in the United States and Mexico, as well as a joint venture in China that was launched in January 2009. “This key partner has what one would generally call a ‘global footprint’,” says Matthias Gründler, Head of Procurement Trucks and Buses. “That means Product program: rotary pillar drives, door and flap drives www.iwn.de ELECTRICS/ELECTRONICS East Penn Manufacturing Co., Inc. Head office: Lyon Station, PA, USA Employees: approx. 4,200 Product program: batteries, battery accessories www.dekabatteries.com CHASSIS Accuride Corporation Head office: Evansville, IN, USA Employees: approx. 9,500 Product program: cast iron components, steel and aluminum wheels, wheel end components, body-shell components, chassis components, drive axles, transmissions, bumpers, fuel tanks, battery boxes, wheel/tire assemblies www.accuridecorp.com POWERTRAIN Federal-Mogul Corporation Head office: Southfield, MI, USA Employees: approx. 43,000 Product program: steel and aluminum pistons, gaskets, bearings 01 that with its production locations, ConMet supports Daimler’s global production strategy and thereby increases the earnings for all value drivers of the External Balanced Scorecard: quality, logistics, cost, technology and innovation.” The Daimler Supplier Award 2010 in the “Exterior” category was awarded by Matthias Gründler to Ed Oeltjen, President of Consolidated Metco, Inc. 02 IWN GmbH & Co. KG IWN GmbH & Co. KG has only been part of Daimler’s supplier network since 2008 but it is already impossible to imagine not having them as a partner. The medium-sized enterprise from Bielefeld, Germany has become a key supplier of Daimler AG within a very short time. “The parts that IWN deliver are indispensable for our innovative door concept in all our buses,” says Matthias Gründler, Head of Procurement Trucks and Buses, praising the importance of the collaboration with IWN GmbH & Co. KG. IWN GmbH & Co. KG completely redeveloped rotary pillar drives and bus door controls for the Mercedes-Benz and Setra buses. This outstanding development service, above-average product management as well as a high product quality made IWN GmbH & Co. KG so convincing that the Bielefeld company receives the Daimler Supplier Award 2010 from Procurement Trucks and Buses in the “Interior” category. No other company has achieved this after such a short time as a Daimler supplier. Matthias Gründler especially emphasized the achievement of Managing Director Reinhold Schulte: “His ideas and knowledge enrich our development process.” This collaboration results in state of the art technology in door drives. Reinhold Schulte was happy to pass on this praise from the customer: “Our employees are highly motivated in every project – my special thanks go to them. They have truly earned this award.” www.federalmogul.com 01 Ed Oeltjen, President of Consolidated Metco, Inc., with Matthias Gründler, Head of Procurement Trucks and Buses (left), and Andreas Renschler. 10 02 Andreas Renschler and Matthias Gründler congratulate Reinhold Schulte, Managing Director of IWN GmbH & Co. KG. Daimler Supplier Magazine 01|2011 East Penn Manufacturing Co., Inc. The Daimler Supplier Award from Procurement Trucks and Buses in the “Electrics/Electronics” category this year goes to East Penn Manufacturing Co., Inc. Founded in 1946 in the US state of Pennsylvania, the company, with joint ventures in Europe and Mexico and their own factory in China, is not only globally oriented itself, it also operates globally in the Daimler Group. The batteries manufactured by East Penn are used in commercial vehicles and buses from the brands Freightliner, Western Star, Thomas Built Buses and Mercedes-Benz. The East Penn Manufacturing Co., Inc. has already been awarded the “Masters of Quality Award” several times by Daimler Trucks North America (DTNA). “This supplier’s commitment to Daimler AG, especially to Daimler Trucks North America, is incomparable,” according to the 03 Head of Procurement Trucks and Buses, Matthias Gründler, in his honorific speech. Gründler especially highlighted the leading role of East Penn Manufacturing Co., Inc. in the safe recycling of its products as well as the company’s commitment to sustainable business. Right from the start, East Penn Manufacturing Co., Inc. worked on making recycling a daily practice. From Lyon Station in Pennsylvania, the company now operates the most advanced recycling centers in battery technology. “We are particularly pleased about the Daimler Supplier Award and would like to continue to work with Daimler in such a cooperative way in order to be able to continue to deliver top-quality products at competitive prices,” said CEO Sally Miksiewicz, thanking Daimler AG. Cover Story 04 Accuride Corporation Accuride Corporation has been linked with Freightliner since the company’s early days – and therefore also with Daimler Trucks North America (DTNA). For Accuride Corporation, 50 years of strategic partnership also means being close to the Daimler AG plants in the USA and Mexico. Furthermore, every year the American company with its head office in Evansville, IN, demonstrates the highest standards in the quality of its products and services. Matthias Gründler, Head of Procurement Trucks and Buses explains the presentation of the Daimler Supplier Award 2010 from Procurement Trucks and Buses in the “Chassis” category in his honorific speech as follows: “The Accuride Corporation is convincing thanks to its continual commitment to providing technical support for Daimler AG, its high quality, delivery reliability and – not to be forgotten – competitive prices.” The true spirit of the partnership has also shown itself, especially in the challenging environment of the raw materials market. “The relationship between our two companies is very close and will stay that way,” said Rick Dauch, President and CEO of the Accuride Corporation since January 2011, at the awards ceremony. The wide spectrum of the Accuride Corporation’s product portfolio ranges from cast iron components, steel and aluminum wheels to battery boxes or body-shell and chassis components. This shows the broad orientation of the Accuride Corporation. The products are distributed under leading brands such as Accuride, Gunite, Imperial, Fabco or Brillion. Daimler Supplier Awards 2010 Federal-Mogul Corporation Federal-Mogul Corporation sets the standard for innovative technologies and solutions for the automotive sector. Founded in 1899, over 43,000 employees now work for the American company in 34 countries. With customers in the light-duty, heavy-duty and off-road vehicle sectors as well as energy generation, rail, aviation and seafaring, Federal-Mogul Corporation has a broad base. The globally networked technical centers in the United States, Europe and Asia enable exactly these groundbreaking quality products and technologies. Federal-Mogul Corporation has been supplying Daimler AG worldwide for many years. In the process, it has proven to be a fast and reliable partner. Within just three months, the company got the Monosteel Piston program for the New Engine Generation up and running and thus safeguarded the introduction of the new DD13 Detroit Diesel engine in the NAFTA region. This new Monosteel Piston technology sets the standard. Firstly, it reduces the oil consumption 05 of the engine significantly. Secondly, the introduction of various cost-reducing initiatives could significantly decrease the overall costs in manufacturing. In his honorific speech, the Head of Procurement Trucks and Buses, Matthias Gründler, also praised Federal-Mogul Corporation as a “reliable partner during the financial crisis”. In addition to outstanding achievements in all areas of the External Balanced Scorecard, Daimler AG rewarded this special commitment of FederalMogul Corporation with the Daimler Supplier Award 2010 in the “Powertrain” category. 05 Andreas Renschler and Matthias Gründler felicitate José 03 Sally Miksiewicz, CEO of East Penn Manufacturing Co., Inc., with Andreas Renschler and Matthias Gründler. 04 Andreas Renschler and Matthias Gründler with Rick Dauch, President and CEO of Accuride Corporation. Maria Alapont, President and CEO of Federal-Mogul Corporation. 11 Cover Story Daimler AG Daimler Supplier Awards 2010 Best Results International Procurement Services presents three suppliers with the Daimler Supplier Award 2010. INTERNATIONAL PROCUREMENT SERVICES DAIMLER SUPPLIER AWARDS 2010 CONSTRUCTION AND FACILITY MANAGEMENT Stahlbau Heil GmbH & Co. KG Head office: Stuttgart, Germany Employees: approx. 120 Product program: steelwork, fitting work, crane systems, bridge construction www.stahlbau-heil.de MARKETING, IT, GENERAL GOODS AND SERVICES JUNG von MATT AG Head office: Hamburg, Germany Stahlbau Heil GmbH & Co. KG For 30 years, Stahlbau Heil GmbH & Co. KG has been a first port of call for customers who expect specific high-quality solutions to steelwork-related problems. Founded in 1981 with 20 employees at its still current location in the Port of Stuttgart, a regular workforce of 120 qualified specialists now works for Stahlbau Heil GmbH & Co.KG. The quality and functionality of the company’s designs is something to be proud of. Company founder Gerhard Heil emphasizes this: “From the beginning, a high quality standard has been the thing that mattered most – and we plan to keep it that way.” This standard is ensured by workshops run by experts and in-house assembly departments. Stahlbau Heil GmbH & Co. KG carries out the planning, design, manufacture, delivery and assembly for bridge construction, crane systems and steel constructions. For the Mercedes-Benz plant in Untertürkheim, Stahlbau Heil recently planned and engineered a suspended steel construction to mount transportation equipment and protection devices, and for the plant in Mettingen a base and a substructure for the cooling towers. The ownermanaged company from Stuttgart is an impor- tant supplier for Daimler AG and knows the global and local requirements of Mercedes-Benz plants well. “They are always there at short notice when you need them. And it is not just all talk, they get their hands dirty to achieve the best results,” said Wendelin Wolbert, Head of International Procurement Services, praising the partner. Reason enough to present Stahlbau Heil GmbH & Co. KG with the Daimler Supplier Award 2010 in the “Construction and Facility Management” category. JUNG von MATT AG JUNG von MATT AG is “independent – and proud of it”. Maybe this is the secret as to why no other agency group in German-speaking countries has been more successful over the last 20 years – both with regard to commendations for creativity and efficiency. Founded in 1991 by Holger Jung and Jean-Remy von Matt, the advertising agency now covers the complete repertoire of market communication in 14 locations in six countries. JUNG von MATT AG’s debut for Mercedes-Benz was at the start of 2007, with a poster campaign for the Mercedes-Benz SLR super sports car. JUNG von MATT received the important EFFIE prize for efficiency in market communication for the “Mercedes GLK Design” project. The best creative minds from Europe’s leading design institutes were consigned to plan the GLK launch event in fall 2008. Online, print, PR and event were meshed together perfectly. In 2010, the Mercedes-Benz commercial “Sorry” received the people’s choice award from “autobild.de”. Recently, readers of the “auto motor und sport” trade journal voted the commercial films developed by JUNG von MATT for Mercedes-Benz as the best automotive commercials. Founder and Member of the Board of Management Jean-Remy von Matt explains the success of the campaigns: “media usage is more optional now than it has ever been. Marketing communication therefore has to be more attractive than ever, it has to offer an additional rational and emotional benefit.” Since this was successful in the close collaboration between the agency and the Mercedes-Benz representatives, he was happy to collect the Daimler Supplier Award 2010 in the “Marketing, IT, General Goods and Services” category. 01 Wilfried Porth and Wendelin Wolbert, Head of International 02 Jean-Remy von Matt, founder and Member of the Board of Procurement Services (right), congratulate Gerhard Heil, Management of JUNG von MATT AG (center), with Wilfried Managing Director of Stahlbau Heil GmbH & Co. KG. Porth and Wendelin Wolbert. Employees: approx. 640 Product program: advertising www.jvm.com MANUFACTURING EQUIPMENT AND SERVICES EMAG Holding GmbH Head office: Salach, Germany Employees: approx. 1,900 Product program: turning machines, grinding machines, machining centers, gear cutting machines, deep-hole boring machines, laser-welding machines www.emag.com 01 12 02 Daimler Supplier Magazine 01|2011 EMAG Holding GmbH EMAG Holding GmbH is one of the bestestablished mechanical engineering companies in Germany. Founded as an iron foundry and engineering works in Bautzen, Saxony in 1867 and re-established in Eislingen/Fils, Swabia in 1952, EMAG Holding GmbH introduced a technology at the start of the 1990s which literally turned the classic turning machine on its head: the so-called pick-up turning machine. The world’s first vertical turning machine with a pick-up spindle has been continually developed and is now indispensable for the challenging series production in the automotive industry. With 1,900 employees, EMAG Holding GmbH is the most significant manufacturer of these types of machines internationally. Four technology centers and manufacturing plants in Germany and 19 branches on three continents are Cover Story Outstanding The winner of the Special Award “Innovation” 2010 has revolutionized lighting technology. SPECIAL AWARD “INNOVATION” 04 DAIMLER SUPPLIER AWARDS 2010 SPECIAL AWARD “INNOVATION” Automotive Lighting GmbH Head office: Reutlingen, Germany Employees: approx. 13,000 Product program: headlamps, tail lamps, electronic control units www.al-lighting.de 03 controlled from the headquarters in Salach, Swabia. For Daimler AG, EMAG Holding GmbH has implemented complete process chains in the areas of transmission, engine and chassis component production, and this at locations all over the world. “The company has not only recognized the signs of the time but it can truly be described as a global medium-sized company,” according to Head of International Procurement Services, Wendelin Wolbert. EMAG Holding GmbH’s technological leadership in the turning machine area, the outstanding quality of the products and globally oriented, excellent management have convinced International Procurement Services to award the Daimler Supplier Award to the company in the “Manufacturing Equipment and Services” category. 03 Dieter Kollmar, Managing Director of EMAG Holding GmbH, with Wilfried Porth and Wendelin Wolbert. Daimler Supplier Awards 2010 Automotive Lighting GmbH The new-generation Mercedes-Benz CLS vehicles are the first in the world to be fitted with all-LED headlamps with adjustable dynamic light. This not only gives the front of the CLS a distinctive appearance but also ensures a significantly improved view of the road in comparison with previous systems. This remarkable innovation was achieved together with a partner that can be regarded as a technology leader in this area: Automotive Lighting GmbH. For this, Daimler AG presents the Daimler Supplier Special Award “Innovation” 2010 to the company. With over 13,000 employees and 21 locations worldwide, the company presents itself not only as a technological trailblazer, but also as a true global player in the vehicle lighting sector. “Constant innovation, user-oriented solutions and perfect vehicle light quality are becoming more and more important in the highly competitive market of premium vehicles,” emphasized Dr. Thomas Weber, responsible for corporate research & Mercedes-Benz Cars Development on the Board of Management of Daimler AG. Automotive Lighting GmbH, based in Reutlingen, has achieved something really outstanding here. Automotive Lighting GmbH was founded in 1999 as a joint venture by Magneti Marelli and Robert Bosch GmbH. This made it possible to combine the expertise of the two companies, both with deep roots in lighting technology. Thanks to this expertise, Automotive Lighting has brought the first all-LED headlamps with adjustable dynamic lights to series-production maturity for the new Mercedes-Benz CLS – and simultaneously revolutionized lighting technology. 04 Dr. Thomas Weber with Eugenio Razelli and Khalid Qalam, Board Members of Automotive Lighting GmbH (right). 13 Dinner & Dialog In the year of the automobile’s 125th birthday, the Daimler Key Supplier Meeting bridged tradition with future-proof innovations. This also marked the exchange between the representatives of the key suppliers and the Daimler top management. STUTTGART | GERMANY 48° N | 9° E Cover Story 01 The “gullwings” 300 SL and SLS AMG 03 Georg Weiberg, Head of Daimler Trucks E-CELL welcome the guests of the Product Development, talking to supplier Daimler Key Supplier Meeting. 02 Dr. Thomas Weber, Member of the Board of Management of Daimler AG, responsible for Group Research & Mercedes-Benz Cars Development, in conversation. 02 03 01 04 Daimler Supplier Awards 2010 representatives. 04 The winners of the Daimler Supplier Awards accepting congratulations. Cover Story Daimler Supplier Awards 2010 01 Matthias Runar, designer of the award 04 Stefan Buchner, Head of Global Power- sculpture (left), discussing the future train and Procurement Trucks and Buses, of automotive design with some supplier in the dialog area of Procurement Trucks partners. and Buses. 02 Gerty Kroneberg, International Procure- 05 Once again, the Mercedes-Benz Center ment Services, meeting Dr. Klaus-Jürgen Stuttgart provided a perfect setting for Benzinger from Van Technology Center the Daimler Key Supplier Meeting. at the Untertürkheim plant. 03 Daimler AG and key supplier repesentatives make use of the opportunity to talk in the provided dialog areas. 01 02 03 04 05 Cover Story Daimler AG Daimler Supplier Awards 2010 Fascination, Perfection and a Passion for Detail The coveted Daimler Supplier Award sculpture was designed at the Mercedes-Benz Design Center in Sindelfingen. A closer look behind the scenes. SINDELFINGEN | GERMANY 48° N | 9° E B right daylight is flooding through the glass facade of the Mercedes-Benz Design Center at the Sindelfingen plant. But the inner workings of the open-plan building are some of the Group’s best-kept secrets. Here, shapes are modeled and new colors created, not just for automobiles but also for special occasions – such as the presentation of the annual Daimler Supplier Award. For the winners of this exclusive prize, the MercedesBenz Design Center especially designed and created the award sculpture. The distinctive language of shapes The award sculpture was the brainchild of Matthias Runar, who is active in the development of strategic concepts. It’s not unusual for him to take a break from designing breathtaking premium vehicles to create a sculpture – he sees it as a task that he approaches with the same ethics as his daily work. “Mercedes-Benz design sets itself apart from the rest with clear shapes, fascination, perfection and a passion for detail,” says Matthias Runar. “That’s true for our brand image and our vehicles, just as it is for our award sculpture.” The sculpture consists of a round base, a transparent fan and an arc that point upward to meet at the top. In addition to the sculpture’s clear shapes, Runar added a note in the margin of his sketch that may be even more indicative of the close collaboration between Daimler AG and its supplier partners: “Different characters uniting for one goal!” 18 Hand-made model construction Based on the pencil sketch, a CAD model was developed before the material and materials processing was determined. The award sculptures are created by a model builder. “We knew that the award sculpture was in “The award sculpture promotes identification with this highest honor and the motivation of suppliers to earn an award for themselves.” Matthias Runar good hands,” says Matthias Runar. The model builder carefully assembles not only the sculptures but also their transportation boxes – which are done nearly exclusively by hand. Color makes all the difference The award sculpture, which was presented for the third time in March of this year, remains true to form. That’s a good thing, as Matthias Runar emphasizes. “First of all, it promotes identification with this highest honor, but also the motivation of suppliers to earn an award for themselves.” The only thing that changes is the color of the arc. It is painted with painstaking detail, and it’s not just any color. This is special paint from the Mercedes-Benz color line. The matte blue paint on the arc of the 01 Fascination, perfection and a passion for detail – that is what the design of the Daimler Supplier Award sculpture stands for. Cover Story Daimler Supplier Awards 2010 01 The Daimler Supplier Award sculpture was designed at the Mercedes-Benz Design Center in Sindelfingen. 02 In one of the detailed sketches designer Matthias Runar noted possible materials. 03 Starting from a round base, a transparent fan and an arc point upward to meet at the top. 04 The bright yellow matte paint chosen for the 2010 Daimler Supplier Award trophy is the original paint of the SLS AMG E-CELL’s “lumilectric magno”. 01 02 03 Cover Story Daimler Supplier Awards 2010 first sculpture for the 2008 Daimler Supplier Award was followed by the original “AMG Le Mans metallic red” paint from the new Mercedes-Benz SLS AMG. The bright yellow paint chosen for the 2010 Daimler Supplier Award trophy – “lumilectric magno” from the SLS AMG E-CELL – was painted in 17 layers, just like the car, and fascinated all in attendance at the awards. Color trends and nuances How are the special colors and paints created? It’s best to ask HansJoachim Walitschek, Head of the Interiors and Materials department, and his team. The interior and exterior colors for the smart fortwo, the Mercedes-Benz CLS and the Maybach are his responsibility alongside the Mercedes-Benz Actros. “We are past the ‘neutral’ era in automotive paint. The trend now is toward stronger, more brilliant shades.” Walitscheck mentions the neutral color of white, which used to be unthinkable but now can be found in countless nuances. He explains the multi-layer bright “We have a lot of creative freedom, but we work very closely with our design studios to identify and set new trends.” Hans-Joachim Walitschek technologies, which Mercedes-Benz was among the first automotive manufacturers to use. And when talking about the “Alubeam” silver shade that shines like mercury on the hoods of the exclusive AMG vehicles, even an experienced color designer like him can get excited. Color samples and new technologies Is the basement of the Mercedes-Benz Design Center like a mad scientist’s lab, with pots of neon, bubbling paint? “No,” says Walitschek with a smile, “We have a lot of creative freedom, but we work very closely with our global design studios to identify and set new trends.” Walitschek’s team creates experimental color samples at the company’s paint stations for the Advanced Design Centers in Sindelfingen and Como, Italy, for later use in show cars and concept studies. For paint used in series models, the focus is not on color spectrums, but on getting lab shades ready for series production. Here, Mercedes-Benz Design coordinates with Daimler AG’s Procurement department and especially with suppliers to ensure the paint’s long-term stability and quality. “We worked intensively and exclusively with a partner on our special “alubeam” color. It is a highly sensitive aluminum pigment that is very hard to bind and apply,” says Walitschek. “Alubeam” is a totally new technology in terms of paint structure, application and pre-treatment of the foundation. Color visions It is quite clear that as materials change, so do the technological challenges – and vice versa. For instance, when chassis components are no longer made from steel or aluminum, but from carbon reinforced plastic (CRP). For Walitscheck and his employee, Claudio Brivitello, this is no longer new ground. After all, Mercedes-Benz also relies on future CRP chassis components for lightweight construction. “New ground” to him now means the shade itself. His wish is for a greater range of colors. His vision is for colors that are more colorful and emotional. He’s keeping quiet about how his color vision will shape the future brand image and the vehicles of Mercedes-Benz. In any case, Walitschek says, we can all look forward to the color of the arc on the next award sculpture. 21 04 Product Projects Top C with Coupé Daimler AG Top C with Coupé Since spring 2011 the Sedan and Station Wagon of the Mercedes-Benz C-Class present themselves in comprehensively updated form. With a very expressive Coupé, Mercedes-Benz expands the model range of the C-Class. Accomplishing the job placed highest demands on project management, development partners and suppliers. STUTTGART | GERMANY 48° N | 9° E 22 Daimler Supplier Magazine 01|2011 Product Projects Top C with Coupé 23 Product Projects Top C with Coupé 01 The interior with its newly developed dashboard shows that more than a conventional facelift was involved in the case of the C-Class. M ore than a million units of the current model series of the Mercedes-Benz C-Class have been sold since 2007. This year, the bestseller appears not only in a new look but with new “heart” and “senses” as well. The current model refinement package is not at all limited to touchups. The design of the Sedan and Station Wagon has been revised on a grand scale. Customers can expect greater safety on the highway thanks to ten new assistance systems. On top of that, more efficient engines cut fuel consumption by as much as 31 percent. All the more and for the first time, from June 2011 Mercedes-Benz is putting a compact C-Class Coupé on the market. The sporty two-door model, which impresses with its high dynamics and progressive engineering, celebrated its world premiere at the Geneva Motor Show in early March 2011. Many new features In all, more than 2,000 new parts distinguish the latest generation of the Mercedes-Benz C-Class from its predecessor. The front and rear ends have been given The design and engineering of the C-Class Sedan and the Station Wagon have been revised on a grand scale. a more distinctive design. The new dashboard together with the optional high-resolution color display in the instrument cluster emphasizes the premium claim of the interior. Along with other assistance systems, ATTENTION ASSIST drowsiness detection and the DISTRONIC PLUS proximity control make their arrival in the model series. The new telematics generation offers internet access and for navigation a 3D display with plastic city views. The efficiency-enhancing measures include the further improved 7G-TRONIC PLUS automatic transmission, the ECO start/stop function and, of course, the new engines. Driving enjoyment plus exemplary efficiency All C-Class power plants now wear the BlueEFFICIENCY badge, signaling that they are especially efficient and environment-friendly in the way they use fuel. One highlight is the introduction in the C 350 BlueEFFICIENCY of the new V6 engine featuring the innovative and highly efficient BlueDIRECT process. Despite additional 25 kilowatts output versus the previous version, the engine’s average consumption per 100 kilometers has fallen by 3.1 liters to 6.8 liters. In the lighter and more compact C-Class Coupé, the unit gets even better power and efficiency. 24 01 Product Projects Daimler AG Top C with Coupé 01 The C-Class Coupé’s panoramic sliding sunroof. 02 Driver’s view: The 3-spoke multifunction sports steering wheel and the instrument cluster with round dials featuring a dynamic tube-style design. 03 The new Coupé expands the model range of the Mercedes-Benz C-Class. 01 02 Efficient project organization At the procurement end, the C-Class facelift and the Coupé were handled by the same model series management organization. For the first time, purchasing tools were employed in a model refinement project which otherwise are used for new-model projects. In development partner EDAG there was an additional point of contact in the change management process for the Coupé project. “This process posed a major challenge to our suppliers and had to settle down first,” says Nicole Biedermann, Head of Procurement MercedesBenz Cars and Vans, Model Series Management NPP and Series C-/E-Class, PMC/33. “Jointly with the development partner, however, we managed very efficiently to integrate all technical departments and suppliers participating in the project.” controls are now more finely detailed and electroplated. The stepped top of the instrument cluster now also accommodates the central display. The instrument cluster and a discreet light-catching contour continue on to the front passenger side. Here, as with the other innovations for the Sedan and Station Wagon facelift and the development of the Coupé, Mercedes-Benz was able to rely on the excellent performance of its partners from the component-supplying industry: The dashboard comes from Johnson Controls Interiors GmbH & Co. KG and is manufactured at that company’s facility in Grefrath, Germany. Module strategy opens up opportunities for sales The implementation of the module strategy proved once again to be a success factor – both for Mercedes-Benz and for the suppliers. For instance, the steering wheel from Takata Petri, which already sees use in other model series, was integrated for the C-Class as well. The same goes for the seat structure of the C-Class Coupé. “With the module strategy we have created a basis enabling us to define the technical and economic project goals very precisely and implement them accordingly across several model series,” Nicole Biedermann explains. Particularly pleasing to the suppliers: they benefit not only from the very good sales figures for the C-Class Sedan and the Station Wagon, but can notch up additional sales volumes with the Coupé. Outstanding achievements of the partners The newly developed dashboard is one of the items which show that more than a conventional facelift was involved in the case of the C-Class. The surfaces of the 26 Mastering a challenging process For the first time, the new C-Class and the C-Class Coupé are being built in four Mercedes-Benz plants on three continents: in Bremen, Sindelfingen, South Africa and China. Despite a tighter timetable compared with a new-product project, the same team managed to handle both processes simultaneously. The production changeover itself took place at the Mercedes-Benz plants Bremen and Sindelfingen virtually from one day to the next. “Especially when changes are made during the model year, a smooth production changeover is a crucial factor,” explains Alban Bossenmaier, Manager PMC/332. “That means, the model change takes place just-in-time and just-in-sequence, so to speak, in ongoing production. We really did an outstanding job of this in Bremen und Sindelfingen.” The start of the model change at the East London plant in South Africa takes place three months later. All in all Nicole Biedermann is extremely satisfied with the results. “The reward for the good cooperation between project management, development partners and suppliers is a punctual start-up combined with very good quality.” FACTS AND FIGURES MERCEDES-BENZ C-CLASS COUPÉ Models: C 220 CDI BlueEFFICIENCY, C 250 CDI BlueEFFICIENCY, C 180 BlueEFFICIENCY, C 250 BlueEFFICIENCY, C 350 BlueEFFICIENCY, C 63 AMG Diesel Engines: L4 cylinder Gasoline Engines: L4 cylinder, V6 cylinder and V8 cylinder Power output: 115 kW / 156 hp to 336 kW / 457 hp Rated torque: 250 to 600 Nm Combined fuel consumption: 4,4 to 12,0 l / 100 km 03 01 A Global Bestseller From procurement to manufacturing and in the markets: The new Fuso Canter sets highlights worldwide even in its eighth generation. F KAWASAKI | JAPAN 35° N | 139° E uso launched its first light-duty truck in 1963. Since then, seven generations of the truck have sold more than five million times, and today the Canter operates in more than 150 countries around the globe. A few of months ago, Mitsubishi Fuso Truck and Bus Corporation (MFTBC) introduced the new Fuso Canter “The Canter is already the topselling model of Daimler Trucks worldwide, and the latest generation will continue this success story seamlessly,” said Andreas Renschler, Management Board member of Daimler AG, responsible for Daimler Trucks. Indeed: according to Renschler, the new Canter will further expand its leading position in more ways than one. Focused competencies The Canter’s global dimensions were already evident at the start of the new product project, which was launched about four years ago under the name “Light-duty International Future Truck” (LIFT). The specialist 28 departments of Daimler AG worked closely together from the start. The competences in Engineering, Quality, Procurement, Production Planning, Logistics and Supplier Management were focused from Stuttgart to Kawasaki to fulfill the high expectations placed on the best-selling model. The new Canter was developed in strict observance of the “Commercial Vehicle Development System,” a globally standardized development system for all Daimler Trucks brands. As part of this system the entire development process passes through ten quality-control stages (quality gates) to ensure the exceptional quality and reliability of the new-generation Canter from the first day of production. The most important suppliers were integrated into this process at an early stage and numerous supplier days were instrumental in bringing about the vehicle and the start of series production. Global procurement Procurement Trucks and Buses (TG/P) rigorously utilized the instrument of “global sourcing” to take advantage of its global procurement power for Product Projects A Global Bestseller 01 The new Fuso Canter was completely redesigned in- and outside. What’s more, the vehicle is lighter and safer than its predecessor. 02 The new Canter is the first commercial vehicle to feature a dual clutch transmission as standard. 02 the Fuso Canter as well. The focus was not just on competitive costs but on technological, qualitative and logistical concepts. In this way, global sourcing has made an essential contribution to ensure the provision of the global manufacturing network along the entire supply chain. Global sourcing accounts for more than 40 percent of the procurement volume for the new Canter by value. emission standard JP09 (Japan New Long-Term Emission Regulation), which was introduced in 2010, and the new truck fuel economy standards, which will go into effect in Japan in 2015. With the new Canter, Fuso also is the first to introduce SCR BlueTec technology in a light-duty truck in Japan. New vehicle concept How the Canter is likely to expand its top position in the light-duty truck segment is evident in the vehicle itself. “The vehicle concept of the new Canter once again sets standards for profitability, eco-friendliness, safety and design,” said Albert Kirchmann, CEO and President of MFTBC. The Fuso Canter was completely redesigned in- and outside. Improvements to the frame structure, axle mounts and brake system make the vehicle lighter and safer. The new Canter is also the first commercial vehicle to feature a dual clutch transmission as standard. The Duonic dual clutch transmission combines automated gearshifts with the advantages of a manual gearbox. In contrast to a fully automatic torque converter transmission it provides better fuel economy and lower exhaust emissions. Tapping new markets The fact that the new Fuso Canter meets customer needs and highest environmental standards equally well also has a global dimension with regard to the light-duty truck’s markets. Fuso will further expand the traditional sales power in Japan, Southeast Asia and the Middle East, especially with a view to the key markets in the growth region Asia, according to Andreas Renschler. “In 2010 every other commercial vehicle of more than six tons was sold in China, but China is not the only highly promising market on the Asian continent – most of the so-called ‘Next-11’ states are located here.” Pakistan, for example: The majority of completely knocked down kits (CKD) of the Canter exported from Japan is assembled in Karachi by Master Motor Corporation Ltd. The Pakistani company also handles sales of the Fuso vehicles and will build a dense nationwide network of dealers and repair shops. For the environment and the customer “In the new Canter we have developed a vehicle that meets customer needs as perfectly as it does highest environmental standards,” explained Kirchmann. Development work in the area of energy-efficient drive technologies, which the Global Hybrid Center in Kawasaki is working full steam to advance, pays equal dividends on both sides of the equation. They benefit both the customers and the environment. Thanks to further evolved combustion engines, the new Canter today already meets the new Impulses on the North American market Kai-Uwe Seidenfuss, MFTBC Vice President Sales & Service International, also sees significant potential in North America. After all, the launch of the new Canter generation means that one of the world’s most modern and efficient light-duty trucks enters the US and Canada market: “We assume that the new Canter and its very low emissions and low operating costs will generate further impulses in this market.” The chances of the Canter continuing its success story for an eighth generation are excellent. 29 Product Projects Cult and Magic Daimler AG Cult and Magic The Mercedes-Benz SLK is a trendsetter in its third generation too: on the highway and under the hood, with retracted roof and – thanks to the new panoramic vario-roof MAGIC SKY CONTROL – even when it’s closed. The roadster is the product of an exceedingly productive supplier cooperation. STUTTGART | GERMANY 48° N | 9° E 30 Daimler Supplier Magazine 01|2011 Product Projects Cult and Magic 01 In the new Mercedes-Benz SLK the MAGIC SKY CONTROL panoramic vario-roof can be switched to light or dark at the push of a button. 31 Product Projects Cult and Magic A two-seater, long hood, short tail. The new MercedesBenz SLK entices with the primary charms of the classic roadster. The wide radiator grill bears the Mercedes star in a prominent central position; from the headlamps a feature line flows on to the muscular rear fender. The car’s inner values show that these charms are not merely superficial. With the most compact exterior dimensions in its class, the new Mercedes-Benz SLK has an interior whose generous size is exemplary. The designers have developed interior appointments for it featuring well-thought-out ergonomics, high-quality, authentic materials and great attention to detail. On sunny days, sun-reflecting leather ensures that the seats and other surfaces covered by it do not heat up too strongly. And if the stars do not provide enough light at night, the ambient lighting illuminates the interior. Dynamic drive system and suspension The new SLK also sets standards where handling dynamics and fuel consumption are concerned. Compared with the previous models the SLK consumes up to 24 percent less fuel owing to the standard-fitted ECO start/stop function and the new direct-injection engines. Three models initially will be available at the market launch of the SLK. The SLK 200 BlueEFFICIENCY with 135 kW (184 hp) has the lowest CO2 emissions in its segment. The SLK 250 BlueEFFICIENCY is equipped with the enhanced optional 7G-TRONIC PLUS 7-speed automatic transmission and consumes 6.2 liters (NEDC, combined) per 100 kilometers. The V6 power plant in the SLK 350 BlueEFFICIENCY is an all-new development with third-generation direct injection, piezo injectors and multi-spark ignition. 225 kW (306 hp) accelerate the roadster from zero to 100 km/h in 5.6 seconds. Its fuel consumption is 7.1 liters (NEDC, combined) per 100 kilometers (167 g CO2 per kilometer). Success in the third generation “The new SLK embodies the role of trendsetter like no other car,” says Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, full of enthusiasm. “I’m sure that with its passionate design, its high-grade interior and its modesty at the filling station it will continue providing for tremendous pleasure on the road and consolidate its status as cult roadster.” The SLK has been a cult car since its market launch in 1996. The first generation caused a stir with its vario-roof, which converted the open-top roadster into a hardtop coupé within a few seconds at the push of a button. The second generation placed a scarf of warm air around the neck and shoulders of the occupants with AIRSCARF if required, enabling open-top driving even at cooler temperatures. The new SLK leaves no room for doubt that it will continue the success story of its predecessors without the least interruption. 01 The new Mercedes-Benz SLK entices with the primary charms of the classic roadster. FACTS AND FIGURES MERCEDES-BENZ SLK Models: SLK 200 BlueEFFICIENCY, C 250 BlueEFFICIENCY, C 350 BlueEFFICIENCY Engines: L4 cylinder and V6 cylinder Power output: 135 kW / 184 hp to 225 kW / 306 hp Rated torque: 270 to 370 Nm Combined fuel consumption: 6,2 to 7,1 l / 100 km World’s first: panoramic vario-roof One feature of the new SLK appears to be stealing the show from everything else, however. It’s called MAGIC SKY CONTROL, is a world’s first, and has enchanted not only the experts since its presentation: A panoramic vario-roof that folds open and closed, but also can be “opened” even when closed. This glass roof can be switched to light or dark at the push of a button. When light it is virtually transparent, offering an open-air experience even in cold weather. In its dark state the roof provides shade and prevents the interior from heating up when the sun’s rays are very intense. 33 Product Projects Daimler AG Cult and Magic Innovative and very complex concepts Realizing such innovative and highly complex concepts while meeting demanding cost targets was one of the biggest challenges for the people in charge of the project. The Purchasing team started out under the direction of Tobias Moch as project procurement unit for the SLK and by April 2010 had been integrated into the model series management organization. The latter unit’s manager Frank Haas recalls that the contract awarding processes for the major procurement blocks for the new SLK took place in crisis year 2009. “Consequently, it was important for us to cooperate with reliable suppliers with a future,” explains Frank Haas, Head of Model Series Management S, SL, SLK-Class, Procurement Mercedes-Benz Cars and Vans, PMC/24. In addition, new suppliers were qualified in the SLK project and actively involved in vehicle development. “Fully in the spirit of the Daimler Supplier Network, the SLK offers these suppliers an opportunity to recommend themselves for follow-up orders through outstanding achievements,” says Haas. Project House Roof Very early on, the project house for the Roadster opened the way to a successful product gestation process. For the new SLK, for the first time the project organization was extended by a RHT (retractable hardtop) subproject manager with attached “Project House Roof”. There, all specifications and connections between roof and vehicle were coordinated, across all departments. In addition, jointly with the componentsupplying partners it was possible to successfully implement new approaches to cooperation with the suppliers in the early stages of the project. For example, the responsibility for development, quality and procurement for the lightweight roof module was incumbent on the subproject managers from the respective technical departments of Daimler AG, while assembly and the handling of logistics were farmed out to a system partner. Project objectives comprehensively achieved Apart from the panoramic vario-roof MAGIC SKY CONTROL, for Axel Schlegel from SLK Model Series Management, PMC/243, the integrated rear wall module is a further example of the implementation of especially innovative concepts in the new SLK: “Through the use of carbon-fiberreinforced plastic we managed to reduce the weight of this module and simultaneously ensure highest crash and rollover protection.” Hood and fenders are made of aluminum. Obviously, in the new SLK innovative ideas like MAGIC SKY CONTROL are the attractions because customers directly experience them. But applying the same attention, the project team of Daimler AG and the suppliers devoted themselves to all those “charms” that distinguish the vehicle as a whole, making it a roadster that once again sets trends: on the highway and at the filling station, under the hood and under the open sky. 01 02 01— 03 Solar simulations in the laboratory: This is where the new technology of MAGIC SKY CONTROL underwent long-term tests under extreme and precisely reproducible conditions. 04 In the new Mercedes-Benz SLK designers have developed interior appointments featuring well-thought-out ergonomics, high-quality, authentic materials and great attention to detail. 34 03 04 People Daimler AG Making Success Sustainable Making Success Sustainable Since the beginning of the year, Matthias Gründler has been Head of Procurement Trucks and Buses, TG/P. On March 1, 2011, Dr. Klaus Zehender took over as successor to Frank W. Deiss as Head of Procurement Mercedes-Benz Cars and Vans, PMC. We interviewed them about their new duties. STUTTGART | GERMANY 48° N | 9° E 36 MATTHIAS GRÜNDLER DR. KLAUS ZEHENDER Head of Procurement Trucks and Buses, TG/P Head of Procurement Mercedes-Benz Cars and Vans, PMC Daimler AG Daimler AG Daimler Supplier Magazine 01|2011 People Making Success Sustainable “In the weeks and months to come, I will visit locations and suppliers to get a better picture.” Matthias Gründler “I will focus on continuing the strategy dialogues which we very successfully began with the Daimler Supplier Network.” Dr. Klaus Zehender M r. Gründler, you have been in your new role since January 1, 2011 and Dr. Zehender, you started on March 1. How have your first weeks and months been? sions about future product innovations. Regionalizing future production series and collaborations on the further development of alternative drive systems are key topics that we’re looking at with our suppliers. As you can tell, these exciting and critical tasks continue to demand the full commitment of all our staff. Matthias Gründler: I’ve met with a lot of employees in recent weeks and months to get to know them and their duties. Of course, in the weeks and months to come, I will visit additional locations and suppliers for commercial vehicle procurement to get a better picture. The discussions I’ve had have shown me that I work with a very professional team that is globally positioned. The business model is properly aligned so that we can act on a worldwide scale, such as in the global commodity boards. Matthias Gründler: The same goes for the Trucks division – if you stand still, you fall behind. I’m glad that we emerged so vibrantly from the crisis. But if we want to secure our success for the long term, the commercial vehicles division must do its part. Some examples include raw materials management and capacity utilization. There is still a lot to do. What topics are at the top of your list for the near future? Dr. Klaus Zehender: Working with suppliers was already a key component of my work back when I was in charge of logistics for the Sindelfingen Mercedes-Benz plant. I’m delighted as Head of Procurement Mercedes-Benz Cars and Vans to further expand this experience and delve into another angle of it. Personal discussions with our suppliers are particularly important to me. In 2011, I will focus on continuing the strategy dialogues which we very successfully began with the Daimler Supplier Network. Matthias Gründler: One issue that’s keeping us busy is the sharp rise in sales volume in the US and our capacity planning. We’re also looking at sharpening the professional edge of our raw materials management. We additionally want to manage the Daimler Trucks strategy in the BRIC countries and the launch of new product projects the best way we can from a procurement aspect. Particularly in regard to new products, we need to ensure sustainable quality assurance when starting up production. The last financial year was very good for MercedesBenz Cars and for both Daimler Trucks and Daimler Buses. The 2011 forecast is more than optimistic. Does that take the pressure off of you on a day to day basis? Dr. Klaus Zehender: Apart from the issues just mentioned, we’re securing the eight startups in 2011 and the contract awards process for the next generation of the current C-Class, which as you know will be manufactured in four locations as part of a production network. Here, we are evaluating the localization advantages in China, South Africa, and the NAFTA region in order to create a win-win situation for us and our suppliers with a view to the overall costs. We also want to tap significant potential with regard to replacement parts and AMG this year. CV DR. KLAUS ZEHENDER 1996 Joined Daimler-Benz AG 1998 — 2000 Head of strategic planning for the controlling departments of Mercedes-Benz passenger car and smart at DaimlerChrysler AG 2000 — 2002 Head of the strategy and planning unit for the Mercedes-Benz passenger car and smart business unit of DaimlerChrysler AG 2002 — 2005 Business management director (budget controlling, product controlling, accounts, invoicing, IT systems) for DaimlerChrysler AG’s Sindelfingen plant 2005 — 2011 Logistics director for Daimler AG’s Sindelfingen plant Since March 2011 Head of Procurement Mercedes-Benz Cars and Vans CV MATTHIAS GRÜNDLER 1986 Joined Daimler-Benz AG 1995 — 1999 Sales Planning and Controlling, Mercedes-Benz Cars 1999 — 2003 Head of Sales & Marketing Department, DaimlerChrysler South Africa 2003 CFO, DaimlerChrysler Thailand 2004 — 2005 CFO, DaimlerChrysler South East Asia in Singapore 2005 — 2008 CFO, Mercedes-Benz Dr. Klaus Zehender: Definitely not. Some recurring issues include achieving our cost targets, particularly in light of rising raw materials prices, and 2011 supplier performance. We are also very focused on securing our production capacities and will hold extensive discus- South Africa 2008 — 2011 CFO, Mitsubishi Fuso Trucks and Bus Corporation in Japan Since January 2011 Head of Procurement Trucks and Buses and of Business Development Powertrain 37 Trends Daimler AG At Home in India At Home in India Daimler AG has gained a new brand: Daimler India Commercial Vehicles Pvt. Ltd. is to build light- and heavy-duty trucks in Oragadam under the name BharatBenz – in India and for India. ORAGADAM | INDIA 13° N | 80° E 01 03 02 Daimler Supplier Magazine 01|2011 W hen Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, presented the new BharatBenz brand in February 2011, he said: “Our new truck brand clearly demonstrates that Daimler is at home in India.” And he left no doubt as to why there is no space, and not even a hyphen, between the names Bharat and Benz: Daimler AG’s involvement in India consists of a tight-knit entity which has no need for any such linking elements. Brand name BharatBenz conjures up positive associations The name “Bharat” stands for the country of India and originates from the Sanskrit word “Bharatam” – the land of the emperor Bharata. In India, the word Bharat instantly conjures up associations with Bharat Ratna – the “jewel of India”, which is the country’s highest civilian medal. The name “Benz” enjoys similarly high repute, Daimler having launched the first truck in the country together with Tata in 1950. The name Benz has since been synonymous with progress and reliability in India. The brand name BharatBenz thus has highly positive connotations both for customers and within the Indian automobile industry. Quality and performance ex-factory In Oragadam near Chennai, preparations for the successful launch of the new products are already in full swing. At a site covering some 160 hectares, Daimler India Commercial Vehicles Pvt. Ltd. (DICV) has set up a production plant with a state-of-the-art test track which highlights the company’s uncompromising pursuit of quality and performance. Daimler is investing around 700 million euros (over 44 billion Indian rupees) in Oragadam. Parts outsourced to Indian suppliers The BharatBenz brand and the production plant in Oragadam demonstrate a clear commitment to India in two respects. Firstly, there is Daimler AG’s involvement in one of the world’s strongest growth markets. “The BharatBenz product range will draw on the full scope of Daimler Trucks’ technical expertise. The trucks are tailored perfectly to the needs of Indian customers,” stresses Marc Llistosella, Managing Director and CEO Daimler India Commercial Vehicles. And secondly, rather than taking established suppliers to India, DICV has decided to procure parts from Indian suppliers, either as standard components or within the scope of development activities. Purchasing, supplier management and logistics Erich Nesselhauf, Vice President Procurement, TG/P7, Supplier Management & Logistics, TG/ISP, TG/ISL, has been on location in Oragadam for almost three years now and has overseen the localization of procurement operations from the outset. He heads the Purchasing Unit there, comprising a total of three departments and a purchasing team of 63. His team is integrated in the global TG/P purchasing structure. The areas of Supplier Management and Logistics, which are also under Nesselhauf’s direction, currently have a workforce of 82. Trends At Home in India In view of the comparatively low level of vertical integration, DICV has outsourced complete assembly of the light-duty truck engine to the AVTEC company, for example. Some of the axles are to be fitted by American Axles Manufacturing (AAM) under a contract manufacturing agreement. Strategically important suppliers, such as MS Autotech for the bodyin-white and KLT for the entire scope of frame assembly, are even to be located directly at the DICV site in Oragadam. This will enable a high rate of just-in-time and just-in-sequence deliveries and lead to substantial savings in logistics and investment costs. Qualification of suppliers at local level Central challenges remain the qualification of suppliers and, in particular, supporting suppliers in development efforts. A development team and DICV’s supplier management ensure at local level that the components meet the requirements of the Indian market. In addition, the concept of “regionally mandated supplier management” promotes communication between the Daimler Trucks plants and the introduction of global processes, as well as worldwide support in the area of supplier development and the approval of parts. Technological support “Where necessary, the Indian suppliers travel to Germany and Japan for training and workshops. In the other direction, experts from the global Daimler Trucks network come to India to provide the suppliers with technological support,” reports Erich Nesselhauf. As an additional quality assurance measure, DICV’s supplier management has installed a “100 percent firewall” for all C- and D-samples, which means that suppliers may only dispatch parts and components to DICV after passing the respective supplier managers’ quality tests. Quality standards ensured across the board The pooling of the areas of Purchasing, Supplier Management and Logistics under the direction of Erich Nesselhauf is key to the success of the project. On this basis, DICV has managed to ensure the necessary quality standards throughout all areas of operations and to develop the suppliers as potential export suppliers at an early juncture. “In terms of value, over 90 percent of the materials for both model series of the light- and heavy-duty trucks have already been outsourced to suppliers. This means that the quality gate requirements are met in full,” says Erich Nesselhauf. 2012 will see the start-up of truck production in Oragadam – and roll-out of the first series production truck representing the BharatBenz brand. 01 The BharatBenz brand logo. 02 In Oragadam, India, preparations for the successful launch of the new BharatBenz light- and heavy-duty trucks are already running at full speed. 03 2012 will see the first series production truck representing the BharatBenz brand. YOUR CONTACT Globally coordinated procurement strategies and sourcing “We have outsourced more than 80 percent of our purchasing volume to local Indian suppliers. At the start of production, almost half of the suppliers will be based directly in the state of Tamil Nadu,” notes Erich Nesselhauf. Erich Nesselhauf, TG/P7, [email protected] Marion Gillich, TG/ISP, [email protected] ADDITIONAL INFORMATION “Consistently Global”, Daimler Supplier Magazine 02|2010, Page 33 39 Sustainability & Integrity 40 Concentrated Skills Daimler AG Daimler Supplier Magazine 01|2011 Sustainability & Integrity Concentrated Skills Concentrated Skills The Center of Competence for Zero-Emission Mobility (CZM) in Mannheim is creating the drive technology of the future – with input from the divisions and in close collaboration with leading development partners. MANNHEIM | GERMANY 49° N | 8° E 41 Daimler AG 01 At the Center of Competence for ZeroEmission Mobility (CZM) pioneering drive technology is developed for passenger cars, vans and commercial vehicles. 02 The wealth of knowledge benefits not only Daimler AG’s commercial vehicles division. 03 Drive technologies are being developed in close cooperation among those responsible for product development, specialists from the CZM and supply 01 partners. 02 T he Mercedes-Benz plant in Mannheim exclusively builds engines and assembles buses. Well, not exactly the whole plant. In factory buildings 55, 56 and 57, Daimler AG operates the Center of Competence for Zero-Emission Mobility (CZM) where pioneering drive technology is developed for passenger cars, vans and commercial vehicles. Back in 1998, ten Atego 1217 trucks with hybrid drives were built as test vehicles. Here, the small series vehicle Citaro FuelCell was successfully launched in 2003. In 2004, the Mercedes-Benz E200 NGT (natural gas technology) series followed, and then in 2008 the B180 NGT and Sprinter NGT. In 2010, the first vehicles from the innovative Atego BlueTec Hybrid fleet were built. That same year, they received the German Sustainability Prize in the “Products” category. Part of the Group-wide skill network The CZM was founded in Mannheim in 1994 – back then as a competence center for zero-emission commercial vehicles. But it soon became obvious that such a wealth of knowledge could benefit not only Daimler AG’s commercial vehicles division but also the entire group. Today, the CZM is working with development and planning departments from all vehicle divisions that bring alternative drive technologies to the production stage, from natural gas to hybrid electric to hydrogen. Long-term strategies like “The road to zero-emission mobility” and “Shaping future transportation” are implemented in collaboration with partners. Test factory for alternative drive systems The CZM’s production objectives are clearly defined, from prototype to series. Prototypes or small series of vehicles with alternative drives 42 don’t fit into an environment of mass-produced passenger cars, vans and commercial vehicles. However, it is not expected that new drives will be a direct part of mass market production in the near future. This is exactly where the Center of Competence for Zero-Emission Mobility in Mannheim comes in: It is responsible for building prototypes, and using the In all project phases, the Center of Competence for Zero-Emission Mobility works closely with suppliers to bring alternative drive systems to series production. knowledge gained to transfer the project into small series production. After the successful startup of the small series, the CZM develops and tests series-ready production technologies with a view to switching the manufacture to mass production once the number of units rises. Close cooperation with suppliers In all project phases, the CZM works closely with suppliers to bring alternative drive systems to series production. This applies in particular to the core competencies for gas tank and hybrid systems. The high voltage system for the Atego BlueTec Hybrid was developed in close cooperation among those responsible for product development, specialists from the CZM and employees of the Eaton Corporation, a technology leader in electric, hydraulic and mechanical drives. “Particularly with regard to new technologies, the cooperation with suppliers often extends beyond the usual technical scope,” explains Axel Becker, department Head 03 01 of Production in the Center of Competence for Zero-Emission Mobility. “We must work together to develop new testing methods for quality assurance, tools for diagnosing and commissioning hybrid systems, right up to new aftersales and transport concepts.” New ideas need creative cooperation partners Conversely, the CZM also supports the suppliers as a partner for technical and qualitative challenges. “For instance, due to the initial qualitative challenges in the first CRP (carbon reinforced plastic) containers to store natural gas, we sent a resident engineer to our supplier to help us find the best solution together,” says Becker. New, unconventional ideas in particular need reliable, creative cooperation partners on both sides. The special knowledge that the CZM employees have acquired has become absolutely essential – especially when it comes to quality or manufacturing processes for installing and commissioning compressed gas or hybrid systems. Even when it comes to the most high-tech new drives, the employees of the CZM have a good starting point thanks to their vast experience. Innovative testing technologies for securing innovative drives The CZM’s equipment is also impressive. Among the manufacturing innovations are density tests for compressed gas systems. The industry standard prescribes manual checks using gas detectors. The CZM has gone a step beyond: Automating the testing procedure means 100 percent process-ready density of the gas system. Moreover, the CZM has test stations that can supply up to 600 volts to the drive systems – a prerequisite for testing specific high voltage components for hybrid and fuel cell systems before commissioning a vehicle. For this reason, 44 acceptance of the Atego BlueTec Hybrid truck and the Citaro FuelCELL hybrid city buses, for example, is given together with the experts of CZM on their test stations. Precursor to zero-emission mobility The number of projects and employees, along with the manufactured vehicles in CZM, is continually on the rise. The unit numbers are impressive: The CZM’s bestseller is the B-Class natural gas model which entered series production in 2008, the B180 NGT. The NGT Sprinter is also developing well: In recent years, the CZM has outfitted and commissioned more than 20,000 Mercedes-Benz vehicles with optional natural gas drives. Hermann Doppler, Head of the Mercedes-Benz Mannheim plant, in charge of the global production of commercial vehicle diesel engines, can be proud of the CZM’s success. “We’ve been known for more than a century for advanced engines, trucks, and buses. We want to do the same for highly sustainable mobility.” This vision has become a reality at the Center of Competence for Zero-Emission Mobility. 01 Among the manufacturing innovations at the CZM are density tests for compressed gas systems and test stations for specific high voltage components. Sustainability & Integrity Daimler Supplier Magazine 01|2011 Dos and Don’ts Dos and Don’ts Daimler AG expects compliant conduct of its employees and suppliers. The company has now compiled the most important “Dos and Don’ts” for its suppliers. STUTTGART | GERMANY 48° N | 9° E C ompliance is an integral component of corporate culture at Daimler AG – regardless of unit, activity, management level or country. This also applies extensively to the cooperation with Daimler’s global supplier network. The Integrity Code of Daimler AG is not just a binding internal standard for its employees, it has also been sent to all suppliers in the past and is available to supply partners in the Daimler Supplier Portal. Dos and Don’ts for Daimler Suppliers In daily operations, Daimler employees bear as much personal responsibility for compliant conduct as supply partners. The central questions each individual must ask themselves are: What am I allowed to do? What should I avoid under any circumstances? Vital guidance is available here from an overview of the “Dos and Don’ts for Daimler Suppliers”, which has been available in German, English, Portuguese, Spanish and Japanese since January 2011. The document can also be accessed by all suppliers in the Daimler Supplier Portal (http://daimler.covisint.com). DOS DON‘TS GIFTS — You may give our employees everyday business courtesies, — According to the Integrity Code, Daimler employees and their promotional materials or other items of a value of not more relatives are not permitted to request gifts from suppliers, than /USD 30 if they are granted voluntarily and it can be dealers or customers. ruled out that there is any intention to exercise influence — Do not offer any gifts of a value greater than /USD 30. on our employees’ decisions. However, there can be no prior agreement or understanding between the parties so that Daimler employees and their relatives are not permitted to accept them. decisions cannot be influenced. — Do not send gifts to our employees’ private addresses. — Do not offer gifts of money or unspecific non-cash benefits — Please give your gift openly and with no false intent. (e.g. vouchers, cash, checks or money transfers). DISCOUNTS — Do not give discounts benefiting individual Daimler employees — A discount is only acceptable if it is available to all or groups of Daimler employees. Daimler employees. HOSPITALITY AND ENTERTAINMENT — Do not invite the same Daimler business partners to events — You can invite the same Daimler employees to events that more than twice per year. you also attend up to two times per year. — Without your attendance, your invitations will be considered — Do not invite Daimler employees to events or meals without being personally present. a gift and its value must be limited to /USD 30. — Do not extend invitations to Daimler employees during contract negotiations or if the invitation could be misconstrued as influence. Advice concerning conflicts of interest In line with Section IV of Daimler AG’s Integrity Code, specific advice in cases of conflicts of interest is provided. The “Dos and Don’ts” can be helpful when Daimler employees and suppliers are working together. For example, the cases in which Daimler employees can accept gifts up to a value of a maximum of /USD 30 are explained, and rules of conduct in cases of conflicts of interest involving discounts, hospitality and events of an entertainment nature, travel and accommodation, sponsorship and financial services are defined. — Do not offer Daimler employees inappropriately excessive invitations (e.g. in gourmet restaurants). TRAVEL AND ACCOMMODATION — Exceptions are permitted for Daimler employees for business travel in a business partner’s plane with the prior approval of the immediate supervisor and at least a Senior Vice President (level C or higher). However, the business partner’s invitation — Third-party business partners are not permitted to pay travel or accommodation expenses for Daimler employees. — Do not offer to cover the costs of family members or cash payments through flat rates. must be made voluntarily and there must be no reasonable likelihood that this will influence the employee’s judgment or actions in performing his or her duties for Daimler. SPONSORSHIP — Do not offer support for events of Daimler AG or of employees of Daimler AG. FINANCIAL SERVICES — Do not offer Daimler employees any financial services. YOUR CONTACT Dr. Mona Ferguson, TG/PPC-C, [email protected] 45 Tools & Processes By Users, for Users By Users, for Users Daimler AG has upgraded its Daimler Supplier Portal based on feedback from suppliers. Registering on the portal is now much easier, as is navigating to relevant information and applications. STUTTGART | GERMANY 48° N | 9° E 01 The new design of the Daimler Supplier Portal is based on the latest corporate standards. The primary navigation is now placed horizontally in the upper margin of the page. The second level is organized by functional area; the third level is opened as a pull-down menu. 46 Daimler AG Daimler Supplier Magazine 01|2011 Tools & Processes I n response to the latest survey about the Daimler Supplier Portal (October 2010 to January 2011), the comments from one user at a supplier company were nearly identical to the results themselves: “The Daimler Supplier Portal has a very clean, clear structure! If I do need help, the staff can give me excellent information.” This praise is also reflected in the statistics of the survey results. More than two thirds of users are happy with the Daimler Supplier Portal, and nearly two thirds rate the helpdesk as “very good” or “good.” “Of course, we’re very pleased with this positive feedback,” says Ralph Greiner, who is in charge of the Daimler Supplier Portal for TG/PPC-P. “But it’s also important to us that we continually upgrade the Daimler Supplier Portal in cooperation with our suppliers. The survey results are forwarded to the respective areas, which determine and implement further measures.” Central interface for a wealth of applications The survey results show that the Daimler Supplier Portal is primarily used as a central interface for many applications used in operational activities around the world. The portal is available in five languages; a total of 11 Daimler AG subsidiaries were added to the portal in recent years. The newest site is India. More than 60 applications cover the entire supply chain – from supplier applications (SRT) and digital purchasing documents (eDocs) to Electronic Change Management (eÄM) and logistic components Daimler Supplier Portal has a new layout Users of the Daimler Supplier Portal will now find navigation and functions with a new layout. “The new design of the Daimler Supplier Portal is based on the latest corporate standards for internal and external online communications,” confirms Sebastian Forchhammer, the portal team member in charge of content and the “look & feel.” The primary navigation is now placed horizontally in the upper margin of the page. The second level is organized by functional area; the third level is opened as a pull-down menu. All portal pages now offer users the option of direct links in the right margin, which takes them to the relevant applications and downloads. User-friendly and expedient Together with Covisint, which operates the site, Daimler AG has significantly optimized the Daimler Supplier Portal for users – for both sides of the equation. Daimler’s departments can manage their applications EVALUATION OF DAIMLER SUPPLIER PORTAL HELPDESK 1% 7% 22% EVALUATION OF DAIMLER SUPPLIER PORTAL VERY GOOD 1% 5% 11% 6% By Users, for Users GOOD SATISFYING 4% 16% 50% SUFFICIENT INADEQUATE VERY GOOD GOOD 32% 45% SATISFYING SUFFICIENT INADEQUATE INSUFFICIENT AVERAGE: 2,68 management (SMB) to supplier evaluations (EBSC). The latter is probably also the reason that according to the survey, five percent of users are already part of the suppliers’ executive staff. The portal is also widely used as a source of information for current topics from the segments of Development, Procurement, Quality and Supply. Easier portal registration Two thirds of those surveyed use the portal regularly, i.e., every day or several times per week. In order to further expand and simplify this extensive use, Ralph Greiner’s team has taken numerous measures to improve the site. As Greiner explains, “The easier it is to access the Daimler Supplier Portal, the more often it will be used.” At the end of February 2011, a Daimler-specific portal registration system was launched to greatly facilitate access. Now, the supplier number determines the user profile and the available options to the user. The main problems familiar from the previous registration process – for company and user registration alike – have been solved by adjusting the original Covisint registration process. INSUFFICIENT AVERAGE: 2,37 and downloads more conveniently and provide them to suppliers. The suppliers’ users, in turn, benefit from the fact that registration and finding pertinent information and applications is much easier, thus making it user friendly. “By supporting our users, meaning our suppliers, the new registration and updated portal layout is more user-friendly and specialized than ever before. This helps our suppliers concentrate on what matters most: working with the information and applications on the Daimler Supplier Portal,” says Ralph Greiner. YOUR CONTACT Ralph Greiner, TG/PPC-P, [email protected] ADDITIONAL INFORMATION http://daimler.covisint.com 47 Locations Extreme Climate Zones Daimler AG Extreme Climate Zones Just a few months after the new driving simulation center, Daimler AG is set to open the adjoining climatic wind tunnels in summer 2011 – marking yet another milestone for vehicle development at the Mercedes-Benz Technology Center Sindelfingen. SINDELFINGEN | GERMANY 48° N | 9° E 48 Daimler Supplier Magazine 01|2011 Locations Extreme Climate Zones 49 Locations Daimler AG Extreme Climate Zones 01 Inside the climatic wind tunnels vehicles must withstand extreme tests before they reach the market – here the new Mercedes-Benz SLK. 02 In a total of six conditioning chambers several vehicles can be simultaneously prepared for test scenarios. CLIMATIC WIND TUNNELS PERFORMANCE DATA Number of tunnels 2 Number of conditioning chambers Temperature ranges Wind speeds 6 - 40°C to + 60°C 0 — 250 km/h A t the southern edge of the MercedesBenz Sindelfingen plant, the areas that belong together are gradually growing together. A mere stone’s throw from the Design Center, the new functional areas and test stands at the Mercedes-Benz Technology Center have taken shape: First came the development of an enormous site and the associated media supply infrastructure; then the driving simulation center equipped with the very latest driving simulators in the automotive field; and now the climatic wind tunnels. The exchange between the individual units involved in vehicle development could not be any closer or more thorough, enthused Dr. Thomas Weber, responsible on the Board of Management of Daimler AG for Group Research & Mercedes-Benz Cars Development, at the inauguration of the driving simulator. What he was referring to will become even more apparent when the climatic wind tunnels are commissioned this summer. Extreme climatic tests under one roof By providing reproducible and precise test results, the new building will play a key role in the validation of vehicle development. “The new climatic wind tunnels allow us to simulate extreme climatic conditions, which will further reduce the very complex process of testing vehicles in the various climatic regions of the world, irrespective of season, weather conditions and country,” explains Dr. Teddy Woll, Head of Aerodynamics Development at Mercedes-Benz. In performance terms, it means that temperature ranges of - 40°C to + 60°C and wind speeds of up to 250 km/h can be duplicated under a single roof. These are the kinds of extreme tests that vehicles from a premium manufacturer must withstand before they reach the market. Prime contractor plans and builds A building like the one housing the climatic wind tunnels along with their technical interior is clearly not an everyday construction project. The task of Hilmar Stockinger, Team Leader of Corporate Facility Management for Construction and Infrastructure Projects, CFM/RD, who supported the project from the outset, was similarly challenging. Based on the technical specifications of the test stands, his team and the factory planning department supported the future users in creating functional performance specifications based on the highest standards. What followed was not a conventional tendering process based on lots. Instead, Daimler AG opted for a new approach – the general contractor model. “In this case, some of the applicants formed a consortium that could draw on the core competencies in order to achieve the best possible outcome from a technical and economic perspective,” explains Peter Weiler, Manager of Procurement Plant Equipment, IPS/PE1. The job was ultimately awarded to the ARGE Daimler KWK, a joint 50 venture involving several global supply partners: Aiolos Engineering Corporation based in Toronto, Canada, MCE Stahl- und Maschinenbau from Linz in Austria and Imtech GmbH & Co. KG from Hamburg. A general contractor agreement jointly drawn up by Procurement from IPS/PE1 and the legal department for the first time in this project formed the basis for the cooperation. Highest technical requirements “It was important to us that we provided very thorough support for the work of the general contractor from the time that the tender was awarded – and across all departments,” explains Hilmar Stockinger. In a series of workshops lasting several days, all of the participants gathered to clarify the key issues in all phases of the construction. “In close consultation with us as the future users of these test facilities, the function and layout of all the technical installations were agreed in detail, processes optimized and costs reconciled at regular intervals,” explains Mathias Heidrich, Team Leader of the new wind tunnels in Dr. Woll’s department. In addition, all processes and milestones were documented on a daily basis in a central “process-oriented project “It was important to us that we provided very thorough support for the work of the general contractor.” Hilmar Stockinger management” system (PPM). Thanks to this close coordination, it was possible to almost completely avoid any changes, thereby keeping to the tight schedule and remaining within budget. “In view of the complexity of the project and the highest technical requirements, this joint success cannot be rated highly enough,” stresses Stockinger. Preparing for the next building phase In the interim, the first vehicles have already completed tests on the test stand – naturally under the most extreme climatic conditions. For Mathias Heidrich, the capabilities of the climatic wind tunnels are reflected not just by the climatic conditions that can be reproduced, but above all by the significantly higher throughput volume. This is facilitated by a total of six conditioning chambers in which several vehicles can be simultaneously prepared for test scenarios. At the “Südlicher Mittelpfad” Project House, staff from Development, Procurement, Corporate Facility Management and Factory Planning are meanwhile already thinking one step ahead: The next building phase of the Mercedes-Benz Technology Center is being prepared – the new aero-acoustics wind tunnel, a crash and test center and other projects. 01 02 Locations Daimler AG Maximum Efficiency Maximum Efficiency For 50 years now, Daimler AG has developed automatic transmissions, which it produces at the Hedelfingen plant. The latest generations are making an important contribution to cutting fuel consumption and emissions. B HEDELFINGEN | GERMANY 48° N | 9° E etween the River Neckar and vineyards to the east lies the Mercedes-Benz Hedelfingen plant. Automatic transmissions have been manufactured and assembled here for over fifty years. Five generations and some 18 million units have left the Hedelfingen plant since the early 1960s. Back then, Mercedes-Benz launched a groundbreaking technical innovation, soberly designated K4A 025, onto the German automotive market. It was an automatic transmission equipped with a hydraulic clutch, four speeds and speed-dependent gear selection. In technical terms, the original and the latest transmission generations are of course worlds apart. However, the motivation to continuously improve the comfort and efficiency of automatic transmissions is still the driving force at the Hedelfingen plant. Half a century of innovative strength Dr. Wolfgang Bernhard, Member of the Daimler AG Board of Management, responsible for Production and Procurement Mercedes-Benz Cars and the Mercedes-Benz Vans division, marked the 50th anniversary in November 2010 by highlighting the importance of the location: “Hedelfingen represents half a century of innovative strength, excellent know-how and an uncompromising quality philosophy. This kind of expertise is a key factor in the international competition on the road to the automotive future.” It is all the more important for Daimler AG to retain this expertise within the company, in contrast to many other automotive manufacturers. Optimized automatic transmissions for the future In reality, optimized automatic transmissions make a significant contribution to reducing fuel consumption and emissions. One such example is the evolved 7G-Tronic Plus seven-speed transmission: The unit is designed for start/stop operation of gasoline and diesel engines and further reduces consumption by up to seven percent depending on the vehicle model. Assembly of the new seven-speed transmission is currently operating at full steam – the Hedelfingen plant has even been expanded by the addition of a new two-story building with over 25,000 square meters of floor space. In addition to the electronically controlled 7G-Tronic Plus for rear-wheel drive applications, the new dual clutch transmission (DCT) will be manufactured in Hedelfingen in the future. The new front-wheel drive DCT has just successfully completed production test 2. The unit will be used in the next generation of A-Class and B-Class vehicles. State-of-the-art transmission assembly The evolution of the automatic transmission over the past 50 years has been accompanied by significant changes in the requirements relating to their assembly. Christian Lehmann, Head of Production Planning Compo52 nents/Transmissions (PPA/G), explains this evolution of the front-wheel drive transmissions: “The original front-wheel drive automatic transmission was a spur gear set. This was followed by the continuously variable automatic transmission incorporating a push-link chain system. The latest generation is a dual clutch transmission – a completely new technology that offers unprecedented efficiency.” Consequently, the production facilities and assembly lines at the Hedelfingen plant have been continuously developed from one transmission generation to the next and are stateof-the-art today. For the expansion of the assembly plant for the 7G-Tronic Plus including hybrid technology at the Hedelfingen plant, GROB-WERKE GmbH & Co. KG recently developed and implemented a completely new “We were able to significantly boost efficiency and improve the quality of transmission production.” Andreas Engling assembly system of a high ergonomic standard within a tight schedule. “Crucial to the success of the project were the cooperative nature of the highly competent partnership on the one hand and exceptionally focused project management by both sides on the other, as well as short decisionmaking channels when it came to resolving problems,” stresses Jochen Nahl, Managing Director of Sales at GROB-WERKE GmbH & Co. KG. Center of Excellence for transmissions The expansion of the Hedelfingen plant to create an enhanced Center of Excellence for transmission production has had extremely positive effects according to Andreas Engling, Head of Transmission Production at the Mercedes-Benz Untertürkheim plant: “Tailored solutions and rapid networking have enabled us to significantly boost efficiency while at the same time continuously improving the quality of transmission production.” For those in charge in Hedelfingen, it is clear that transmissions will play a key role in achieving sustainable mobility – not least when it comes to optimizing the efficiency of electrical drive systems in their own right or in conjunction with the internal combustion engine. Particularly in this context, there are noticeable volume increases. Peter Schabert, Head of the Mercedes-Benz Untertürkheim plant and of Production Powertrain Mercedes-Benz Cars, believes the transmission plant is well equipped to meet these future challenges: “The bundling of production expertise in automatic transmissions at the Hedelfingen site is a key factor in implementing the tasks that lie ahead. I am confident that this location now also offers the best prerequisites for continued success in the future production of transmissions that will allow fully electric driving as well.” Locations Maximum Efficiency 01—03 The Mercedes-Benz Hedelfingen plant in the past and present: The evolution of the automatic transmission over the past 50 years has been accompanied by significant changes in the requirements relating to their assembly. 01 03 53 02 Optimum Materials Flow A state-of-the-art logistics center is under construction outside the gates to the Mercedes-Benz plant in Rastatt. In future, a central logistics service provider will control the flow of materials in the Plant Consolidation Center (PCC). MALSCH | GERMANY 48° N | 8° E 54 Daimler Supplier Magazine 01|2011 C onstruction units are still busy with heavy equipment on the grounds of the former cement works in Malsch, Germany. The property will be given over to the new logistics center in June 2011. Just a few months afterwards, great numbers of trucks will begin unloading vehicle components and production materials. From here they will swarm into the warehouse before landing on the Rastatt plant production line in the right order, the right quantities and at the right time. The impressive dimensions of the Plant Consolidation Center From September 2011, the new compact cars will be produced at the Mercedes-Benz plant in Rastatt. The first out of four Mercedes-Benz models in the future will be the successor of the B-Class. Already in 2012, the next compact car model is to follow. In total, three out of four new compact cars will be manufactured at the Rastatt plant – with the effect that more and more parts and components will have to be delivered to the plant in the future. The new logistics center in Malsch will meet the additional space requirements to supply production while bringing together services that were previously performed at different locations literally under one roof. Even the dimensions of the Plant Consolidation Center (PCC) are impressive: The logistics center has 36,000 m2 of warehousing space, 1,600 m2 of offices and 8,300 m2 of loading and unloading zones. Around 200 suppliers will store vehicle parts pre-produced in their own plants in the PCC or even see them completed in the final stage of assembly. Optimum conditions for logistics at location The logistics concept of the Plant Consolidation Center is geared towards creating optimum logistics conditions for Mercedes-Benz plants around the world. “At its core, we worked from the Central Logistics Planning standards, which were adapted in line with the specific requirements of the respective location,” explains Ingolf Gluthe, Head of Logistics Structure Project Planning at Mercedes-Benz Cars Production Planning. “The logistics concept provides for two models where, depending on the available space, the PCC can be built either on the grounds of the Mercedes-Benz plant, such as at the new production location in Kecskemét, Hungary, or outside. The decision as to whether Daimler AG builds and owns the PCC itself or if it works with a partner also stands and falls by this.” Project partner of Daimler AG For the Mercedes-Benz plant at Rastatt, it was decided to build the Plant Consolidation Center outside the grounds. As partner, Daimler AG found a global property company with long-standing expertise in the areas of industrial parks, warehouses and distribution centers. The lessee and operator of the PCC in Malsch is Seifert Logistics GmbH. The logistics service provider will perform all logistics services, from storing parts to transporting them to the Rastatt plant. At full capacity, around 200 employees will work at the Malsch location. Locations Optimum Materials Flow tial providers. Seifert Logistics GmbH was selected from five finalists during an online bidding event (OBE) on the strength of its warehouse layout planning with a combination of shelf and open storage, sequential workspaces and optimized materials flow planning. Advantages of the logistics concept A crucial advantage of this concept is that haulage company vehicles do not have to drive to several unloading stations when delivering different components or parts. Instead, they deliver to a central unloading zone with warehousing and/or sequencing in the PCC and transportation to the factory all handled by Seifert Logistics. This significantly reduces unloading and waiting times for trucks. Procurement IPS/MS2 supports such concepts as the synergy and volume effects of bundling services allow sustainably low logistics costs for both Daimler AG and the suppliers based at the PCC. Short coordination channels, high expectations In addition to the logistics service provider’s concept, its implementation of the project to date has also been highly convincing. According to Alexander Anstett, “Seifert Logistics is a highly motivated, owner-managed company with short coordination channels, streamlined processes and high self-expectations.” The two Managing Directors, Harald Seifert and Günter Walser, view the PCC as a challenge, which they are primarily seizing as an opportunity: “The rising complexity of task requirements and organization structures we have seen in this project is increasingly testing cutting-edge project management,” says Günter Walser. “Your ability to handle several projects at once increases accordingly. The more project managers and teams you have involved in your strategic corporate goals, the greater your rate of success. That is something we have succeeded in doing with this major project.” An historic opportunity in two senses Günter Walser praises the cooperative partnership with Daimler AG representatives: The pulling together and continuous flow of information in regular communications meetings has enabled rapid recognition and joint analysis of project changes and the corresponding adjustments of concepts and processes. With regard to the Automotive division, Harald Seifert views the Plant Consolidation Center as an historic opportunity in two respects: “We are delighted to be laying the foundation for the new automotive logistics center around the time of the 125th birthday of the automobile. The Malsch location will be yet another key component of our Automotive Logistics division.” 01 The dimensions of the new Plant Consolidation Center (PCC) are impressive: The logistics center has 36,000 m2 of Many functions from a single source “The logistics service provider plays a central role in the Plant Consolidation Center since it performs a number of different functions,” noted Alexander Anstett from Logistics and Travel Service Procurement (IPS/ MS2) at International Procurement Services. “That’s why we formulated our key requirements together with Central Logistics Planning when we were tendering the project.” Talks were held with more than 20 poten- warehousing space. 55 Locations Daimler AG America, again the Land of Opportunity America, again the Land of Opportunity Since 2005 Detroit Diesel operates the Redford Supplier Mall. For suppliers, the Mall is more than just a leased production area – they also benefit from shared professional services, low-cost Tier 2 labor, a mature infrastructure and consequently lowest overhead. REDFORD | USA 42° N | 83° W 01 There is a mood of optimism in Redford, Michigan. At the Detroit Diesel plant production is being expanded. 02 To allow the concentration of expertise and production capacity to be leveraged to an even greater extent in future, Detroit Diesel established the Redford Supplier Mall. 03 The Redford Supplier Mall offers a mature infrastructure, ranging from typical plant services and planning, engineering and testing to laboratory and tooling facilities. YOUR CONTACT Johannes Kuhn, TG/ER T here is a mood of optimism in Redford, Michigan. Around 20 miles west of Detroit, the Daimler subsidiary Detroit Diesel manufactures heavy-duty diesel engines with BlueTec technology. Known as the DD13, 15 and 16, they have already met the US environmental standard EPA 2010 for the past two years. Production is being expanded at the Detroit Diesel plant – a measure announced by Martin Daum, President and CEO of Daimler Trucks North America, DTNA, around a year ago: “With a total investment of around USD 200 million, we are underlining the importance of the Redford location and our confidence in Detroit Diesel’s workforce. A commitment of this magnitude only works when it involves strong partners.” [email protected] Strong partners at the Redford Supplier Mall Outside the plant site, too, the upswing is obvious. Once again, the supply industry in Michigan can show full order books. The State is home to nearly all major automotive suppliers with production facilities, sales and engineering offices. With locations in Michigan, suppliers have the unique opportunity to work directly with the “Big 3” and a number of Asian manufacturers that have engineering offices in the state. German suppliers and OEMs are also well represented and organized in Michigan. Therefore, production facilities which are 56 as close as possible to the automotive manufacturers are much in demand. To allow this concentration of expertise and production capacity to be leveraged to an even greater extent in future, Detroit Diesel established the Redford Supplier Mall. The state-of-the-art supplier park is tailored for small and medium-sized suppliers in particular, for whom the construction of their own production facilities would represent too great an “Setting up production in the USA is easier than many foreign supplier companies think.” Johannes Kuhn investment risk. Furthermore, a highly-qualified workforce is readily available in Michigan. Labor is organized at Detroit Diesel by the Toyota-style ‘Team-Concept’ and a new Tier 2 wage system cuts direct labor and benefit costs significantly. Mature infrastructure with minimal overheads Detroit Diesel opened the Redford Supplier Mall six years ago. From 2005 to 2007, it was comprehensively renovated with the financial support of the State of Michigan. As a result, Detroit Diesel can offer a mature infrastructure, ranging from typical plant services and Daimler Supplier Magazine 01|2011 planning, engineering and testing to laboratory and tooling facilities. All services are billed by the hour, meaning they can be scaled to reflect individual needs and requirements. This allows existing Supplier Mall suppliers to minimize overheads in their production structures and quickly generate a profit from their current series production. “Soft landing” – support for foreign suppliers “Setting up production in the USA is easier than many foreign suppliers think. The Redford Supplier Mall provides valuable support – particularly when it comes to meeting the individual requirements of supplying companies”, underlines Johannes Kuhn, Plant Project Manager at Detroit Diesel. A “soft landing” program assists foreign suppliers in legal and employment law matters and the relocation of production units to the Michigan industrial region. Working in close contact with economic bodies in the State of Michigan, 01 Increasing interest in the Redford Supplier Mall is being received from European and, in particular, German supplier companies. such as the Michigan Economic Development Council, Detroit Diesel has pre-negotiated specific tax conditions for smaller suppliers establishing their production at the Supplier Mall using skilled labor from the region. The aim of the “soft landing” program is to lower administrative barriers, minimize capital investment and overhead and allow suppliers at the Supplier Mall to focus entirely on their core business in shortest time to market time. The signs are pointing towards growth “We have built up well-qualified and capable maintenance, technician, engineering, quality, supplier management, purchasing, human resource, legal and IT teams. Our onsite Redford Consolidation Center allows for lowest cost transatlantic logistics. At Detroit Diesel, we understand that modern business requires a high level of competence in order to react fast to market opportunities”, explains Johannes Kuhn. Particularly now that the signs are pointing to significant growth in the US-Market again, consumer products, car and truck orders are showing steady demand and inquiries are increasingly being received from European and, in particular, German supplier companies seeking to establish a production location at the Redford Supplier Mall: close to the customer, in a professional environment, and in a cost-effective manner. As Kuhn puts it, “We at Detroit Diesel would like to use the U.S. economy upswing to invite more European suppliers to join us in Redford and take part in the North American growth.” 02 03 Locations Successful Localization Successful Localization At the Mercedes-Benz plant in González Catán, Argentina, preparations are in full swing for the production launch of the NCV3. Procurement Mercedes-Benz Cars and Vans is managing the localization of procurement scopes on site. GONZÁLEZ CATÁN | ARGENTINA 34° S | 58° W T he Mercedes-Benz plant located in the Argentine city of González Catán, which is named after the famous Silver Arrow pilot Juan Manuel Fangio, has been producing the Sprinter model T1N since 1996, primarily for customers in the Mercosur region. A new milestone is set to be achieved in early 2012 with the production changeover to the current NCV3, which will be manufactured for the first time for the Mercosur domestic market, a region with a population of 260 million. The preparations in González Catán are already in full swing. The Procurement Mercedes-Benz Cars and Vans team, which is located approximately 70 kilometers from the plant in the capital city of Buenos Aires, is working emphatically to find high-quality and reliable local partners. Enormous challenges for the team In South America, factors such as supply security, cost efficiency of projects, escalator clauses regarding exchange rates and inflation and wage increases are of considerable importance. “PMC as a whole, and in particular the Procurement department in Buenos Aires, are faced with tremendous challenges that must be overcome,” states Richard Nitzl, who is in charge of localization management for Procurement Mercedes-Benz Cars and Vans, PMC/45, in the Latin American region. Procurement is carried out on site by Manager Udo Worbis with nine employees. “Our team does excellent work, and even though Stuttgart and Buenos Aires are around 12,000 kilometers apart, we still work very closely with the PMC Procurement headquarters,” emphasizes Nitzl. This is evident with regard to localized procurement scopes, where the procurement processes developed by PMC are applied consistently and the employees receive proper training in this area. 58 01 Starting in early 2012 the MercedesBenz Sprinter model NCV3 will be manufactured for the first time for the Mercosur domestic market. Locations Daimler AG Successful Localization A localization rate of 60 percent PMC utilizes a network of over 120 suppliers in Argentina. Seventy suppliers from the Mercosur region have already been selected for the successor model NCV3. Of these, 55 are from Argentina and 15 are from Brazil. Drawing on suppliers from the Mercosur region is an important factor in ensuring that a local content of 60 percent is reached. Achieving this local content level is particularly important for exports in the fast-growing Brazilian market, which is where approx. 50 percent of the production from the Mercedes-Benz plant in Argentina is sold. All non-localized parts are delivered by the suppliers for the NCV3 in Düsseldorf, which results in an additional volume of 16,000 units per year for these suppliers. Local suppliers are being called upon South American suppliers are frequently local subsidiaries of globally positioned supply companies. However, truly local suppliers are also being called upon, explains Nitzl. An example of this is the supplier Ventalum. Ventalum has 192 employees and manufactures aluminum profiles such as rail systems and sliding windows. For the Sprinter, Ventalum manufactures the aluminum luggage rack. Udo Worbis, Head of Procurement, is very satisfied with the cooperation. “Together with us the supplier generated proposals aimed at optimizing the luggage rack, which resulted in cost and weight savings.” The family-operated company Caimari, which employs 110 workers, could be considered for a further extensive order. Located in the metropolitan Buenos Aires area, Caimari supplies headliners for the bus version of the Mercedes-Benz Sprinter. For parts that are not available in Europe, options are presently being examined to use suppliers which are already drawn upon in the Mercosur region to supply the plant in Düsseldorf. “An initial analysis indicated that it is possible for a local supplier to supply to Mercedes-Benz on a global scale if this proves to economically viable,” states Nitzl. Materials purchasing in Argentina When purchasing production materials in Argentina, the PMC buyers must keep a close eye on continuous price increases. Argentina is regarded to be a soft-currency country with a high rate of inflation. This of course has an impact on the costs of raw materials and labor. “Inflation in Argentina cannot be compared with the one to two percent inflation rate that prevails in Germany,” explains Udo Worbis. “The high rate of inflation in Argentina makes continuous negotiations with suppliers necessary. The purchasing contracts are usually readjusted every year, which is always performed in coordination with the Controlling department in Argentina.” Another factor is also important for Richard Nitzl: In spite of all of the regional challenges, the Daimler employees on site pay close attention to ensure compliance with all laws and guidelines. Due to its stringent monitoring of regulatory compliance, Mercedes-Benz Argentina is able to successfully prevent corruption. “Compliance is just as high a priority here as it is for the rest of the Group,” underscores Nitzl. Commissioning largely completed Udo Worbis and his team in Buenos Aires have already assigned the orders with the largest volumes to suppliers and found qualified suppliers for seats, wiring harnesses, air conditioning and transmission systems, gaskets and tires. The engine for the current Sprinter is also set to be localized in the future. “A short engine is being supplemented in Argentina with 45 add-on parts,” explains Udo Worbis. “Even the turbocharger, which is a high-quality and very complex component, has been localized.” The stage is now set for production of the Mercedes-Benz Sprinter for South America to commence at the beginning of the year. 60 01 02 01 Procurement Mercedes-Benz Cars and Vans, PMC/45, manages the localization of supply parts in South America. 02 At Mercedes-Benz plant in González Catán preparations for the production of the actual Sprinter model are running at full speed. Daimler Supplier Magazine 01|2011 Locations Supplier Strategy South Africa Supplier Strategy South Africa The next generation of the new Mercedes-Benz C-Class is to be manufactured for the first time simultaneously on four continents. Accordingly, Daimler is making heavy investments in the East London, South Africa plant. Thanks also to Daimler’s “Supplier Strategy South Africa,” this means great opportunities for the local supplier industry. EAST LONDON | SOUTH AFRICA 33° S | 27° E S ince 1994, the Mercedes-Benz C-Class has also been manufactured in the East London, South Africa plant, located four hours’ drive east of Port Elizabeth on the Indian Ocean. The current series has been in production since 2007; since 1998, sedans have been exported to the left-hand drive markets and since 2000 to the right-hand drive markets. The next generation of the series, to be launched worldwide starting 2014, will also be manufactured in East London. Daimler is investing some 2 billion rand (more than 200 million euros) to get the plant ready. Among other things, the technical capacity is being expanded so that a third shift can be introduced if market demand so requires. The next generation of the C-Class will be produced on four continents for the first time, following the realignment of the global production network: at the Bremen plant, the future Center of Competence for the series, in Tuscaloosa, Alabama, at the BBAC plant in Beijing, China and in East London, which will account for around one-tenth of the future annual C-Class production. “We expect that the positive overall economic effects of our activities in South Africa will continue to flourish – particularly with regard to the supplier landscape,” says Dr. Klaus Zehender, Head of Procurement Mercedes-Benz Cars and Vans, PMC. New procurement strategy On “South Africa Supplier Day 2011,” the “Supplier Strategy South Africa” was presented to the invited guests. Dr. Klaus Zehender explained the procurement strategy arising from the global production of the next C-Class generation. “PMC’s procurement strategy is based on purchasing module components applied across several model series, that are put out to tender and procured for all production sites. The main purpose here is to reach an optimum between cost factors in production material, tools and logistics within the framework of each location’s localization strategy,” added Dr. Zehender. Mercedes-Benz Vans business division, drew particular attention to the great opportunity for suppliers, who will be able to expand their business relations with Daimler AG thanks to the East London plant. “They will have the opportunity to grow together with us here in South Africa.” The procurement packages to be considered for localization have already been identified by PMC. “The parts to be localized in South Africa are primarily parts whose properties demand close physical proximity to the plant for logistics reasons. The same applies to parts that must be delivered justin-time or just-in-sequence due to their variance,” says Dr. Zehender. At the same time, a local incentive system will ensure that parts related to high local value creation are also manufactured locally. YOUR CONTACT Dr. Jürgen Gleichauf, PMC/34 [email protected] Supplier park offers great benefits One possible way for suppliers to expand their local base in South Africa and increase their production capacities is to move to the Automotive Supplier Park close to the East London plant in the International Development Zone (IDZ) there. “The proximity of the Supplier Park to the plant offers great benefits to suppliers,” explained Dr. Jürgen Gleichauf, Head of Procurement and Export Components at Mercedes-Benz South Africa. The Supplier Park is not the only place where the progress of localization in South Africa is obvious. While only seven percent of installed parts, above all glass, tires and batteries, originated with local suppliers when production of Mercedes-Benz vehicles began in South Africa, the localization rate of the C-Class currently produced in East London is 40 percent. The supplier base, which is now strong and internationally competitive in terms of technology and price, has been built up with the help of Mercedes-Benz South Africa and the company is actively promoting its further development. Local value creation Dr. Wolfgang Bernhard, Member of the Daimler AG Board of Management, responsible for Production and Procurement at Mercedes-Benz Cars as well as the 61 01 02 03 04 Places of Interest Daimler Supplier Magazine 01|2011 “Stick With What You’ve Learned” “Stick With What You’ve Learned” Gottlieb Daimler was born on Schorndorfer Höllgasse in 1834. The automotive pioneer’s birth house was purchased in 1979 by what was then Daimler-Benz AG, and renovated as closely to its original condition as possible. SCHORNDORF | GERMANY 48° N | 9° E T wo automobiles can scarcely fit at the same time on Höllgasse in the Swabian city of Schorndorf – about 30 kilometers east of Stuttgart. When the street was named, no one was thinking about “Hölle,” which is German for “hell.” Rather, they considered the paved street, full of tall half-timbered buildings, a “helle Gasse” (“bright street”), relative to the other cramped, dark streets in Schorndorf. Today, Höllgasse is in Schorndorf’s pedestrian zone – only Not revolution, but evolution In the revolutionary year 1848, when Gottlieb began his apprenticeship in Schorndorf, a large portion of the German population was parttaking in a loud, chaotic revolution, dreaming of overturning the ruling political and social structures. Young Daimler was focused on something else entirely: He wanted to become a tradesman and achieve progress not through revolution, but evolution – with perseverence and hard work. That same year, Schondorf’s pastor gave him some sage advice upon his confirmation: “Stick with what you’ve learned and what you already know.” 01—04 Schorndorf was home to the man who would later revolutionize human mobility. Today, the Gottlieb Daimler Birth House presents a true-to-life copy of his journeyman’s piece as well as drawings of animals and personal items. GOTTLIEB DAIMLER BIRTH HOUSE Höllgasse 7, 73614 Schorndorf, Germany Opening hours: Tues. — Fri. 2 pm — 5 pm, Sat. — Sun. 11 am — 5 pm Free admission The young Gottlieb Daimler started and continued his way – with perseverence and hard work. automobiles with special permission are allowed here. Ironic then, that house number 7 was home to the man who would later revolutionize human mobility: Gottlieb Daimler. A trademan’s family in Schorndorf Gottlieb Daimler was born the second of five children on March 17, 1834. His father owned a bakery and wine shop. His ancestors, who originally came from Vogtland to Swabia’s Schorndorf in 1660 with the name of Deumbler, were all tradesmen. They were master bakers, pretzel sellers, tailors, milliners, carpenters and gunsmiths. Gottlieb Daimler also followed the path of these crafts- and tradesmen. He learned his vocation right next door to his narrow, three-story childhood home at Raidle gunsmiths. A true-to-life copy of the double barrel pistol Daimler made while in training, fittings and grips precisely chiseled and oxidized, is on view at Höllgasse 7. In addition to the pistol, visitors to Daimler’s birth house can view drawings of animals that show young Gottlieb’s artistic talent. There are also some personal items, copies of workpieces and – in text and images – the various life stages of the man who became a technological miracle. Tests, improvements, upgrades It’s unlikely that the young baker’s son ever forgot those words. He remained true to his craft while progressing far beyond. Daimler left Schorndorf in 1853. Ferdinand Steinbeis, a driving force of industrialization in Württemberg, discovered his talent and helped him prepare for the Polytechnical School by sending him as an industrial worker to Graffenstaden, near Straßburg. After his studies and vocational experience in Geislingen an der Steige, Reutlingen and at the Deutz gas engine factory in Cologne, Gottlieb Daimler For dates and times of city tours relating to Gottlieb Daimler, please see www.schorndorf.de Born in Schorndorf, Gottlieb Daimler remained true to his craft while progressing far beyond. developed the “light, fast-running gas engine for general application, particularly in transport” in his famous workshop in a greenhouse in Bad Cannstatt. On April 3, 1885, Daimler received patent no. 43926 for his grandfather clock motor. His invention was not a sensational overnight discovery, but rather the result of many years of hard, honest work, improvements, and upgrades: the work of a true master craftsman from Schorndorf. 63 Published by Daimler AG Responsible for content Daimler AG Sabine Brändle Procurement Communications HPC T728, 70546 Stuttgart, DE Phone +49 711 17-26354, Fax +49 711 17-41355 [email protected] Your contact South Africa Daimler South Africa (Pty) Ltd. Anna Ahlschlager Phone +27 43 706-2484, Fax +27 43 706-2611 [email protected] Your contact Brazil Mercedes-Benz do Brasil Ltda. Cristina Duchecou Phone +55 11 4173-6520 [email protected] Editorial office aexea – communication. content. consulting Augustenstraße 15, 70178 Stuttgart, DE Phone +49 711 699 486 10, Fax +49 711 699 486 60 [email protected] Editorial Management Daimler AG Jochen Schaefers Editor Ralf Christofori (Chief Editor) Holger Müller, Frank Feulner Editorial staff Andrea Klopstein, Natalie Teglev, Janine Thiele, Anja Westinger Design Ingo Ditges, yama inc. – Büro für Gestaltung Alexanderstraße 164b, 70180 Stuttgart, DE The Daimler Supplier Magazine is published twice a year in German and English. You can subscribe to it through the Daimler Supplier Portal: http://daimler.covisint.com Reproduction / Printing Dr. Cantz’sche Druckerei GmbH & Co. KG Zeppelinstraße 29-31, 73760 Ostfildern, DE Photography Daimler AG, KD Busch © 2011 Daimler AG. No parts of this publication may be reproduced without prior written permission from the publisher and reference to “Daimler AG”.