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Vestas Blades Capital Markets Day Brighton, Colorado, 2 September 2010
Vestas BladesCapital Markets Day Brighton, Colorado, 2 September 2010
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Joined Vestas in 1995
Educational background as aProduction Engineer
President of Vestas Blades since 2003
Ole Borup JakobsenPresident Vestas Blades
Capital Markets Day 2010, Colorado, USA
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One of four production business units in Vestas
Capital Markets Day 2010, Colorado, USA
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Global production
8 blade factories in 6 countries
Blade factory, Lauchhammer, Germany
Blade factory, Taranto, Italy Blade factory,Tianjin, ChinaBlade factory,
Daimiel, Spain
Blade factory, Windsor, CO, US
Blade factory,Brighton, CO, US
Headquarter & Staff, Lem, DenmarkBlade factory, Lem, DenmarkBlade factory, Nakskov, Denmark
Capital Markets Day 2010, Colorado, USA
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• Production of blades for Vestas wind turbines
• Vestas core technology – 100% in-house production
Vestas Blades
Capital Markets Day 2010, Colorado, USA
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• 25 m for the V52-850 kW
• 29 m spar for the V60-850 kW
• 39 m for the V80-2.0 MW
• 40 m for the V82-1.65 MW
• 44 m for the V90-1.8/2.0 MW and V90-3.0 MW
• 49 m for the V100-1.8 MW
• 55 m for the V112-3.0 MW
Windsor
Windsor
Windsor (Early 2011)
Brighton (Early 2011)
From 25 to 55 meter blades
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Logistics – we are closer to our customers and their projects
Local supply chain – we build up a network of local suppliers
Costs – we reduce transportation costs
Environment – we cut down on CO2 emissions
In the region for the region
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• Easy access to railroad and highway infrastructure
• Available land
• Large pool of competent people
• Several universities located close by
• Colorado’s strong support for renewable energy
Why Colorado?
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June 2007
Windsorground-breaking
ceremony
Jan2008
Windsor first blade produced
March2008
Windsorgrand
opening
March2009
Brighton ground-breaking
ceremony
Early2011
Brighton scheduled
start-up
Aug 2006
Search process began
Aug2008
Brighton announ-
ced
Vestas Blades in Colorado
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Building size: 410,000 sq ftManufacturing capacity: 1,800 MW/yrJobs: 650+ Blade types: 40 m (V82), 44 m (V90) and 49 m (V100)
The Windsor blade factory
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Building size: 440,000 sq ftManufacturing capacity: 1,200 MW/yrJobs: 650+Planned production start-up: Early 2011Fully operational: 2011Blade types: 55 m (V112)
The Brighton blade factory
Blade Factory
Nacelle Factory
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Supporting Triple15Key Performance Indicators (KPIs) for Vestas Blades
Quality
Cost
Employees
Cost per output indexLanded material cost indexCost price indexQuick stock turn
CTQ (Critical to Quality) Sigma target CTQs above Sigma target – ManufacturingCTQs above Sigma target – Sourcing
Industrial injuries per one million working hoursAbsence due to illnessEmployee turnoverEmployee loyaltyEmployee satisfaction and motivation
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Strategic focus areas secure KPIsFrom 2010-2012
• Health and Care
• Quality
• Waste and Environment
• Supply Chain Performance
• Production Performance
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Health and CareFocus area
Create a safe and attractive work place resulting in:
• Low frequency of industrial injuries
• Low absence due to illness
• High employee loyalty
• High employee satisfaction and motivation
• Low employee turnover
32.2
357.5
12.3
4.1
05
101520253035
2008 2009 Year todate July
Max target2010
Max target2011
Max target2012
Industrial injuries per one million working hoursVestas Blades globally as of July 2010
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Secure high-quality blades through:
• Dialogue and cooperation with internal stakeholders and customers to secure our blades live up to customer quality expectations
• In-house production process capabilities
• The quality of supplied materials
• Training and support to drive quality improvements
QualityFocus Area
Sigma target– Manufacturing and sourcing:· 5 Sigma in 2010· 6 Sigma in 2012
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Reduce waste quantity, cost and environmental impact by:
• Optimizing design and processes• Securing green energy and reducing energy consumption
Waste and EnvironmentFocus area
Target, renewable energy:· 55% in 2010
Target, renewable electricity:· 90% in 2010
Target, reduction of energyconsumption* (2009 = index 100):
· 90 in 2010· 70 in 2012
* KWh per kg produced blades
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Supply Chain PerformanceFocus area
Secure competitive global supply chain and optimize stock turn while avoiding components constraints (short- and long-term):
• Strong local and global supplier network • Just-in-time delivery of materials to factory• Minimize transport costs and cut down on CO2 emissions• Always more than one supplier for the same materials
USA China Europe
Regional Sourcing Target 2010
85%Americas1%Asia 14%Europe
74%China
21%Japan Others 5%93%Europe
7%Asia
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Production PerformanceFocus area
Increase flexibility and throughput in order to support “Make to Order” production and reduced blade cycle time:
• Optimizing and aligning process capabilities using Value Stream Mapping, Standard Work, “Lighthouse” concept, Kaizen, etc.
• Developing employee skills
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• Key Performance Indicators (KPIs) defined via strategy paper
• Process Indicators (PIs) defined via Focus Areas
• Each defined PI must link into a KPI
• Policy Deployment
Focus Area reporting and follow-up
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• Make the customer the focus of our efforts
• Deliver high-quality products
• In a safe and environmentally friendly way
Capital Markets Day 2010, Colorado, USA
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