Regal Rexnord Corporation · NYSE:RRX
Regal Rexnord — Regal Beloit — Investor Day (December 2014)
86 slides from Regal Rexnord's investor day presentation, Dec 9, 2014
Slide 1: Introductions and Highlights
Regal Beloit Corporation Investors & Analyst Day 2014 Introductions and Highlights Mark J. Gliebe Chairman Chief Executive Officer December 9th, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our management’s judgment regarding future events. In many cases, you can identify forward-looking statements by term
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures We prepare financial statements in accordance with accounting principles generally accepted in the United States (GAAP). We also disclose adjusted diluted earnings per share (EPS), adjusted gross profit, adjusted gross profit as a percentage of net sales, adjusted income
Slide 4: Agenda
Agenda Registration 8:00 – 8:30a Introductions and Highlights Mark Gliebe 8:30 – 8:50a Financial Overview Chuck Hinrichs 8:50 – 9:05a Operation Improvements Jon Schlemmer 9:05 – 9:40a Q&A Mark Gliebe 9:40 – 10:00a Break 10:00 – 10:15a Roundtable Breakouts 10:15 – 12:15p C&I Systems Mike Wickiser, St
Slide 5: Today's Presenters
Today’s Presenters Jon Schlemmer John Kunze Mike Wickiser Rob Chesser Chief Operating Officer VP Business Leader Sr VP Business Leader VP Manufacturing Climate Solutions C&I Motors & Generators Chuck Hinrichs Paul Goldman Steve O’Brien Mike Logsdon Chief Financial Officer VP Marketing & VP Business
Slide 6: Key Messages
Key Messages Updating Operating Margin Improvement Goals > Simplification progress > Benefit expectations Performance for Customers > Overall positive customer feedback > Quality becoming a differentiator > Innovation leading to growth Capital Allocation > Returning value to shareholders > Acquisiti
Slide 7: Key Messages - Breakouts
Key Messages - Breakouts Climate Solutions > Positive market indicators > Impact of SEER 13 pre-build on 2014 and 2015 > Energy efficiency regulations a powerful long term driver > New products contributing to growth > Simplification benefits on the way Commercial and Industrial Systems > Market gro
Slide 8: 2014 Financial Highlights
2014 Financial Highlights Revenues Cash Flow Dividend Shares Revenues Free Cash Flow** Increased Repurchased up 5.4%* > 100% of Net Income Dividend 10% 500,000 Shares Solid Progress * 2014 Estimated Sales is Nine Months Actual and 4Q14 Analysts Consensus p8 ** Management Estimate
Slide 9: Operational Highlights (2011-2014)
Operational Highlights (2011-2014) Quality PPM On-Time Delivery 2011 2014 2011 2014 New Products Launched Lean > Engaging our employees 230 >Transforming our facilities Operational Improvements Driving Positive Customer Feedback December 2014 p9
Slide 10: Customer Feedback (2011-2014)
Customer Feedback (2011-2014) Net Promoter Score Responsiveness 2011 2014 2011 2014 Innovation Value 2011 2014 2011 2014 Customer Satisfaction Improvements Driving Long Term Shareholder Value December 2014 p 10
Slide 11: Simplification Progress (2013-2014)
Simplification Progress (2013-2014) Factories Closed/Announced ERPs Consolidated 16 6 Suppliers Rationalized Design Platforms Eliminated 750 3 Halfway Home on Simplification Execution December 2014 p 11
Slide 12: Recent Acquisitions
Recent Acquisitions Products Timing Integration CEMP Flameproof Motors Q4 2013 Complete Vapor Recovery Q1 2014 Complete Motor Controls and Q3 2014 In Process Drives Regal Growing Both Organically and Through Acquisitions December 2014 p 12
Slide 13: Three Year Outlook
Three Year Outlook Revenue CAGR 2% - 4% Adjusted Op Margin Improvement 150 bps – 250 bps Free Cash Flow to Net Income 100%+ ROIC Improvement 270 bps – 360 bps Improvements Expected on All Fronts December 2014 p 13
Slide 14: Financial Overview
Regal Beloit Corporation Investor & Analyst Day 2014 Financial Overview Chuck Hinrichs Vice President Chief Financial Officer December 9, 2014
Slide 15: Financial Overview Agenda
Financial Overview Agenda > Financial Performance Review > Free Cash Flow Performance > Capital Deployment Strategy > Change in Future Segment Reporting > Annual Guidance December 2014 p 15
Slide 16: Strong Record of Sales Growth
Strong Record of Sales Growth $Ms $3,263 $3,167 $3,096 $2,808 $2,238 $2,246 $1,803 $1,826 2007 2008 2009 2010 2011 2012 2013 2014E* * 2014 Estimated Sales is Nine Months Actual and 4Q14 Analysts Consensus Sales Growth Driven by Acquisitions and Organic Growth December 2014 p 16
Slide 17: Adjusted Net Income 2014E
Adjusted Net Income** $Ms $199 $198 $198 $189 $149 $126 $116 $95 2007 2008 2009 2010 2011 2012 2013 2014E* * 2014 Estimated Adjusted Net Income is Nine Months Actual and 4Q14 Analysts Consensus ** See Non-GAAP Reconciliations in Appendix Simplification Drives Future Earnings Growth December 2014 p 1
Slide 18: Dividends Per Share Paid
Dividends Per Share Paid $0.86 $0.78 > 50 years of consistent quarterly $0.74 dividends $0.70 $0.66 $0.64 > Increased the dividend 9 out of $0.62 $0.58 last 10 years > Doubled the normal annual increase in 2014 2007 2008 2009 2010 2011 2012 2013 2014 Consistent Increase in Dividends to Shareholders
Slide 19: Total 7-YR Cumulative Shareholder Return
Total Shareholder Returns Seven Year History 68.5% Regal Beloit 90% 39.7% S&P 500 33.7% DJIA Total 7-YR Cumulative Shareholder Return 70% 50% 30% 10% (10%) (30%) (50%) 2007 2008 2009 2010 2011 2012 2013 2014 December 2014 p 19
Slide 20: Financial Performance Profile
Financial Performance Profile 2007 – 2014E Sales CAGR 10.0% 8.8% 8.8% 9.5% 7.8% 6.9% 5.0% 1.1% 0.0% RBC DHR ROP AME IEX EMR 2007 – 2014E Free Cash Flow / NI 200.0% 139.3% 136.3% 142.5% 150.0% 115.7% 117.1% 122.9% 100.0% 50.0% 0.0% RBC DHR ROP AME IEX EMR Source: Capital IQ. Notes: CAGR represents cu
Slide 21: Strong Free Cash Flow
Strong Free Cash Flow** $Ms Free Cash Flow FCF% of Net Income $300 300% $250 250% $200 200% $150 150% $100 100% $50 50% $0 0% 2007 2008 2009 2010 2011 2012 2013 2014E* * 2014 Estimated Adjusted Net Income is Nine Months Actual and 4Q14 Analysts Consensus and Management Estimates ** See Non-GAAP Reco
Slide 22: Capital Allocation Priorities
Capital Allocation Priorities Strong Balance Sheet Target Debt/EBITDA Ratio: 1.5 – 3.5 Capital Expenditures Target: 2.5% - 3.0% of Sales Dividends Target: 18% – 22% Payout Ratio Acquisitions Share Repurchase Target Accretive Bolt-on and Utilize Remaining Share Repurchase Transformative Transactions
Slide 23: Segment Reporting
Segment Reporting* Electrical Mechanical 92% 8% Climate Solutions Commercial and Power Industrial Systems Transmission 36% 56% 8% > Provides Improved Transparency > Simplifies External Communications > Aligns Segment Reporting with New Management Structure > Effective with 2014 Form 10-K * Based on
Slide 24: Segment Reporting
Segment Reporting* Climate Solutions Commercial and Power Transmission Industrial Systems 36% 56% 8% Products > Small motors > Medium and large > PT gearing > Controls motors > Hydraulic pump drives > Air moving solutions > Generators > Large open gearing > Custom > Specialty mechanical drives, cont
Slide 25: Annual Guidance
Annual Guidance > Regal Will Shift from Quarterly to Annual EPS Guidance > Beginning with 4th Quarter 2014 Earnings Call (Feb 2015) > In Line with Other Diversified Industrials > Reflects Regal’s Focus on Long-Term Performance Increases Transparency of Long-Term View December 2014 p 25
Slide 26: Average Sales Breakdown by Quarter
Average Sales Breakdown by Quarter 27% 25% 25% 23% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Historical Seasonality Guides Quarterly Expectations December 2014 p 26
Slide 27: Operations Improvements
Regal Beloit Corporation Investor & Analyst Day 2014 Operations Improvements Jon Schlemmer Chief Operating Officer December 9, 2014
Slide 28: Operating Margin Improvement
Operating Margin Improvement 11% - 12% Growth - Market & Share 50 – 80 bps 9.5% - New Products 10 – 30 bps Simplification 90 – 140 bps Total 150 – 250 bps 2014E* 2017P * Adj Op Margin Sep 2014 YTD Actual + 4Q14 Consensus Op Margin Expected to Improve 150 – 250 bps December 2014 p 28
Slide 29: Operating Margin Improvement
Operating Margin Improvement 11% - 12% Growth - Market & Share 50 – 80 bps 9.5% - New Products 10 – 30 bps Simplification 90 – 140 bps Total 150 – 250 bps 2014E* 2017P * Adj Op Margin Sep 2014 YTD Actual + 4Q14 Consensus Op Margin Expected to Improve 150 – 250 bps December 2014 p 29
Slide 30: Expect to Deliver 2-4% Organic Growth CAGR
Growth Expect to Deliver 2 - 4% Organic Growth CAGR… > Positive North America Market Indicators > Momentum in Residential HVAC and Mechanical > Energy Efficiency Drivers > Strong Pipeline of New Products > Customer Care Initiative 60 – 110 bps of Margin Improvement December 2014 p 30
Slide 31: Positive Market Indicators
Positive Market Indicators + 9.4% +16.7% +14.8% December 2014 N.A. Market Indicators Point to Three Years of Growth p 31
Slide 32: Business Momentum
Business Momentum NA Resi HVAC NA Mechanical (Y-O-Y Growth) (Y-O-Y Growth) 8% 18% SEER 13 Pre-Build 5% 5% 3% 3% 4Q13 1Q14 2Q14 3Q14 2Q14 3Q14 December 2014 p 32
Slide 33: Energy Efficiency Changes
Energy Efficiency Changes • Commercial Refrigeration • Industrial Motors • Small Motor Efficiency • Large AC/Heat Pump • Commercial Water Heaters • Industrial Motors • Commercial AC/Heat Pump • Air Conditioning EER Increase 2020 2021 • Industrial Motors 2019 2018 2017 • Furnaces • Large Pumps 2016 •
Slide 34: Energy Efficiency Changes
Energy Efficiency Changes • Commercial Refrigeration • Industrial Motors • Small Motor Efficiency • Large AC/Heat Pump • Commercial Water Heaters • Industrial Motors • Commercial AC/Heat Pump • Air Conditioning EER Increase 2020 2021 • Industrial Motors 2019 2018 2017 • Furnaces • Large Pumps 2016 •
Slide 35: Energy Efficiency Changes
Energy Efficiency Changes • Commercial Refrigeration • Industrial Motors • Small Motor Efficiency • Large AC/Heat Pump • Commercial Water Heaters • Industrial Motors • Commercial AC/Heat Pump • Air Conditioning EER Increase 2020 2021 • Industrial Motors 2019 2018 2017 • Furnaces • Large Pumps 2016 •
Slide 36: New Innovative Products
New Innovative Products Number of New Products 70 > 180 New Products Launched 60 Since 2012 50 > Majority Focused on Energy Efficiency > High Efficiency Product Sales Up ~5% in Sep 2014 YTD 2012 2013 2014E Expecting Incremental Growth from New Products December 2014 p 36
Slide 37: Innovative New Products
Innovative New Products Hydronic Commercial Heating HVAC Commercial High Efficiency Refrigeration Resi HVAC Pool Residential Pumps HVAC December 2014 p 37
Slide 38: Operating Margin Improvement
Operating Margin Improvement 11% - 12% Growth - Market & Share 50 – 80 bps 9.5% - New Products 10 – 30 bps Simplification 90 – 140 bps Total 150 – 250 bps 2014E* 2017P * Adj Op Margin Sep 2014 YTD Actual + 4Q14 Consensus Op Margin Expected to Improve 150 – 250 bps December 2014 p 38
Slide 39: Simplification Initiative
Simplification Initiative Projected Completed Planned Reduction Targets 2013-2015 2013-2014 2015-2016 ERPs ~ 6 6 ~ 4 Factories ~ 6 7 ~ 9 Design Platforms ~ 8 3 2 Suppliers ~ 500 750 ~ 500 Making Tremendous Progress, Over 50% Complete with Execution December 2014 p 39
Slide 40: Springfield & Kentucky Programs
Springfield & Kentucky Programs Springfield Kentucky 315,000 sq-ft Reduction 288,000 sq-ft Reduction Benefits Benefits > $15M Savings > $5M Savings > Labor, Transportation, Overhead > Labor, Transportation, Overhead > Lead Time Reduction > Lead Time Reduction Status Status > 75% Complete > 20% Compl
Slide 41: Design Platform Simplification
Design Platform Simplification Worm Gears IEC High Efficiency 48 Frame HVAC 3.3” HVACR Q2 2015 (>50% Complete) Phase 1 – 2015 56 Frame C&I Phase 2 – 2016 December 2014 p 41
Slide 42: Exiting Low Margin Business
Exiting Low Margin Business Potential Revenue Impact $Ms ($150) > Drives Margin Rate Improvement > Analyzing all Segments > Proactively Exiting Low Margin Business > Focus Resources in Higher ($15) Margin Areas 2014 2015-2017 Further Simplifying the Business Portfolio December 2014 p 42
Slide 43: Operating Margin Improvement
Operating Margin Improvement 11% - 12% 9.5% > Market Indicators Support Growth > Energy Efficiency is a Tailwind > New Product Drive Growth/Margin > Simplification = Self Help 2014E* 2017P * Adj Op Margin Sep 2014 YTD Actual + 4Q14 Consensus Linear Improvement Expected Over 3 Years December 2014 p 4
Slide 44: Lean Six Sigma
Lean Six Sigma Continuous Improvement, Transforming Our Operations December 2014 p 44
Slide 45: Lean Six Sigma
Lean Six Sigma Before After Transforming All of Our Operations December 2014 p 45
Slide 46: High Energy Teams
High Energy Teams Engaging Every Regal Employee in Continuous Improvement December 2014 p 46
Slide 47: Automate for Efficiency
Automate for Efficiency December 2014 p 47
Slide 48: Positive Customer Feedback
Positive Customer Feedback Net Promoter Score Responsiveness 2011 2014 2011 2014 Innovation Value 2011 2014 2011 2014 Customer Satisfaction Improvements Driving Long Term Shareholder Value December 2014 p 48
Slide 49: Significant Quality Progress
Significant Quality Progress Customer Quality (PPM) Oil Wick 2009 2010 2011* 2012 2013 2014 2015 2016 2017 YTD Goal Goal Goal * Excludes One-Time Quality Escape 79% Improvement in Measured Quality December 2014 p 49
Slide 50: Customer Quality Recognition
Customer Quality Recognition December 2014 p 50
Slide 51: Key Takeaways
Key Takeaways > Simplification is Removing Complexity > Most Innovative in Our Markets > Strong Focus on Lean and Continuous Improvement > Positive Feedback from Our Customers > Committed to Margin Improvement December 2014 p 51
Slide 52: Takeaways
Takeaways > Market indicators showing growth in 2015 > Simplification execution half way complete - benefits on the way > Energy efficiency a tailwind from both regulations and paybacks > New products expected to drive incremental sales and margin > Lean Six Sigma driving continuous improvement in o
Slide 53: Thank You
Thank You Mark J Gliebe President Chief Executive Officer Jonathan Schlemmer Chief Operating Officer Chuck Hinrichs Vice President Chief Financial Officer John Perino Vice President Investor Relations p 53
Slide 54: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations Adjusted Net Income (Dollars in Millions) 2007 2008 2009 2010 2011 2012 2013 2014E* GAAP Income (Loss) from Operations $ 115.5 $ 125.5 $ 95.0 $ 149.4 $ 152.3 $ 195.6 $ 120.0 $ 185.8 Asset Impairments and Other, Net - - - - - - 74.6 0.2 Purchase Accounting and Transa
Slide 55: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations Free Cash Flow Reconciliation (Dollars in Millions) 2007 2008 2009 2010 2011 2012 2013 2014E* Cash Flow from Operation $ 200.6 $ 154.2 $ 314.9 $ 175.4 $ 265.3 $ 351.7 $ 305.0 $ 291.0 Capital Expenditures (36.6) (52.2) (33.6) (45.0) (57.6) (91.0) (82.7) (80.0) Grants
Slide 56: Commercial and Industrial Systems
Regal Beloit Corporation Investor and Analysts Day 2014 Commercial and Industrial Systems Michael Wickiser Steve O’Brien Senior Vice President Vice President December 9, 2014
Slide 57: Key Messages
Key Messages > C&I Systems Overview > Growth Progress – 2014 and 2015 > New Products to Drive Growth > Energy Legislation Update > Questions December 2014 p 57
Slide 58: C&I Systems Overview
C&I Systems Overview Sales by Product Sales by Geography Revenues $1.7B ROW Fractional Europe HP Drives & Controls Asia New Products Launched Pacific 64 Generators North America Primary Brands Large HP Integral HP Sales by End Market Production by Region Oil & Gas Europe Distribution U.S. & Power Ca
Slide 59: C&I Systems Products
C&I Systems Products Motors and Controls Power Generation Drive & Control Systems December 2014 p 59
Slide 60: North America C&I Motors
North America C&I Motors Annual Growth Rate 2014 Revenue Performance 16% 13% (25%) 0% (3.4%) (2.5%) Refrigeration Irrigation 2009 2010 2011 2012 2013 2014 Pump End Market Diversity Commercial HVAC Pump Distribution General Industry Refrigeration Distribution Commercial General HVAC Industry Irrigati
Slide 61: North America C&I Motors
North America C&I Motors 2014 2015 Refrigeration Irrigation Pump Commercial HVAC General Industry Distribution Growth Driven by Improving End Markets and Efficiency Trends December 2014 p 61
Slide 62: C&I Systems Growth Drivers
C&I Systems Growth Drivers Sales By Product > Fractional - Technology Fractional HP - Energy Efficiency Drives & Controls > Integral/Large/Generator - Penetration Generators - Global Cost Competitiveness Large > Drives & Controls HP Integral HP - Technology - Custom Solutions Unique Product Strategi
Slide 63: Energy Efficiency Changes
Energy Efficiency Changes • Commercial Refrigeration • Industrial Motors • Small Motor Efficiency • Large AC/Heat Pump • Commercial Water Heaters • Industrial Motors • Commercial AC/Heat Pump • Air Conditioning EER Increase 2020 2021 • Industrial Motor Regulations 2019 2018 2017 • Furnaces • Large P
Slide 64: Century VGreen Pump System
Century VGreen Pump System Revenue Growth Rate 50% 30% 25% 2014 2015 2016 December 2014 p 64
Slide 65: Integral Motor Growth Strategy
Integral Motor Growth Strategy > Improved Cost and Efficiency at New Wuxi Facility > New Simplified Global Design Platform > Penetrating Existing Markets and Benefiting from Efficiency Trends Drives C&I Systems Organic Growth December 2014 p 65
Slide 66: Drives & Controls New Technology
Drives & Controls New Technology > New Medium Voltage Drive Fills 5,500 HP Installation Gap In Custom Drives & Controls Portfolio > Unique Patented Design > Differentiated Features - Higher Efficiency (> 99.5%) - Simple Assembly - Flexible Installation - Increased Reliability Leveraging Acquired Tec
Slide 67: C&I Systems Key Takeaways
C&I Systems Key Takeaways > Difficult North America Markets Improving > Energy Efficiency Trends are a Tailwind > Technology / New Products Drive Organic Growth > Positioned to Grow in Industrial Motors > Emerging Custom Drives & Controls Segment Outlook Positive with Market Growth, New Products and
Slide 68: Climate Solutions
Regal Beloit Corporation Investor and Analysts Day 2014 Climate Solutions John Kunze Paul Goldman Vice President Vice President Climate Solutions Marketing and Communications December 9, 2014
Slide 69: Climate Solutions Key Messages
Climate Solutions Key Messages > Climate Solutions Overview > Energy Legislation Update > New Products to Drive Growth > Questions December 2014 p 69
Slide 70: Climate Solutions Overview
Climate Solutions Overview Revenues Sales by Product Sales by Geography $1.1 B Other ROW Blower Europe Systems Fractional HP North Motors America Diversity in Served Segments Sales by End Market Production by Region General Europe USA Global Foot Print Industries Asia Comm Ref Resi & Light Technolog
Slide 71: Key Products and Applications
Key Products and Applications Products Applications December 2014 p 71
Slide 72: Energy Consumption in Typical Home
Energy Consumption in Typical Home Other Electronics Heating Lighting Appliance Cooling Water Heating Sources: EnergyStar.gov Regal Opportunity to Impact Top 60% of Energy Consumption December 2014 p 72
Slide 73: Regional Efficiency Standard
Regional Efficiency Standard Industry Units by SEER (M units) 5.9 6.5 > New Regional 14 SEER Standard 18+ > “Can Not Manufacture” law 15-16 > 1/1/15 Effective Date 14 > 18 Month Sell Through Provision 13 2014 2016 Sources: JP Morgan, Management estimates Favorable Mix From Efficiency Legislation Dec
Slide 74: Resi HVAC Demand Outlook
Resi HVAC Demand Outlook Air Conditioning/Heat Pump Units by Demand Driver (M Units) 8 6 4 2 ‘73 ‘75 ‘77 ‘79 ‘81 ’83 ‘85 ‘87 ‘89 ‘91 ‘93 ‘95 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 ‘09 ‘11 ‘13 ‘15E New Construction Penetration Replacement Sources: AHRI, US Census, JP Morgan Both New Construction and Replacement Dem
Slide 75: New Products
New Products Dec Star Gas Premix 6.9 Featuring Regal Axial Technology December 2014 p 75
Slide 76: Simplification - Springfield
Simplification - Springfield Item Reduction - Factory Space 315,000 ft2 - Equipment 96 - Components 3,000 - Set-ups 30,000 - Truckloads 1,000 - Cycle Time 40 % - Warehouse 15,000 ft2 Cost Savings, Better Quality, Better Service December 2014 p 76
Slide 77: Climate Solutions Key Takeaways
Climate Solutions Key Takeaways > Leader in NA HVAC, Water Heating & Commercial Refrigeration > Growth Drivers > Innovative New Products > Simplification Driving Margin Improvement Outlook Positive with Market Growth, New Products, Efficiency and Simplification December 2014 p 77
Slide 78: Simplification
Regal Beloit Corporation Investor & Analyst Day 2014 Simplification Rob Chesser Mike Logsdon VP Manufacturing VP Technology December 9, 2014
Slide 79: Simplification
Simplification Design Platforms Eliminated Factories Closed/Announced 16 3 Over Halfway Complete December 2014 p 79
Slide 80: Design Platform Simplification
Design Platform Simplification Worm Gears IEC High Efficiency 48 Frame HVAC 3.3” HVACR Q2 2015 (>50% Complete) Phase 1 – 2015 56 Frame C&I Phase 2 – 2016 December 2014 p 80
Slide 81: 3.3" HVACR Simplification Example
3.3” HVACR Simplification Example AO Smith Design Destination Platform Fasco Design Category Eliminated Design platforms 1 Component parts 2,000 Manufacturing equipment (pcs) 137 December 2014 p 81
Slide 82: Overall Design Simplification Impact
Overall Design Simplification Impact Equipment Elimination (Cumulative) 400 300 200 2014 2015 2016 Component SKU Reduction (Cumulative) 11,200 7,700 4,700 2014 2015 2016 Less Maintenance, Less Capital, Less Inventory December 2014 p 82
Slide 83: Impact of Frame Simplification
Impact of 48 Frame Simplification 200 End Frame - 331 262 48 HVAC Rotor - 638 Standard Motor 350 Shaft – 2,076 400 Stator - 913 470 Main Frame – 1,141 3,000+ Component SKU’s Eliminated December 2014 p 83
Slide 84: End Frame Simplification
End Frame Simplification Raw Finished Material Melt Diecast Machine Part 15 Machines Eliminated Set-ups Capacity Utility, Tooling, & Maintenance Cost Open Floor Space Simplification Delivers Real Savings and Enables Automation December 2014 p 84
Slide 85: Springfield Consolidation
Springfield Consolidation Item Reduction - Factory Space 315,000 ft2 - Equipment 96 - Components 3,000 - Set-ups 30,000 - Truckloads 1,000 - Cycle Time 40 % - Warehouse 15,000 ft2 $15M in Savings…Better Quality & Service December 2014 p 85
Slide 86: Simplification Summary
Simplification Summary > 3 Major Platforms Simplified > ~4,700 Component SKU’s Pruned > ~1.6M ft2 Rooftop Eliminated > Processes Improved with Moves > Leaner Factories > Improved Customer Experience > Primed for Automation Halfway Complete with Execution… Benefits on the Way December 2014 p 86